G.R. No. L-9374, December 29, 1943 Topc! T"e #olc$ #o%e%&e! 'orela%d, (. Author: Kelsey Mendoza Link: "&&p!))***.la*p"l.%e&)+,d+,rs)+,r191-).eb191-)/ r0l-93740191-."&ml FACTS: 1. Plaintiffs and defendant are brothers and sisters and only heirs to Greorio !a"ian"eno del #al $ho died intestate. An ad%inistrator $as a&&ointed for the estate of the de"eased' and' after a &artial ad%inistration' it $as "losed and the ad%inistrator dis"hared by order of the Court of First (nstan"e. ). *urin the lifeti%e of the de"eased he took out insuran"e on his life for the su% of P+,',,, and %ade it &ayable to the defendant as sole benefi"iary. After his death the defendant "olle"ted the fa"e of the &oli"y of said &oli"y he &aid the su% of P1-'./0.), to redee% "ertain real estate $hi"h the de"edent had sold to third &ersons $ith a riht to re&ur"hase. .. The rede%&tion of said &re%ises $as %ade by the attorney of the defendant in the na%e of the &laintiff and the defendant as heirs of the de"eased 1endor. The rede%&tion of said &re%ises they ha1e had the use and benefit thereof and durin that ti%e the &laintiffs &aid no ta2es and %ade no re&airs. +. The defendant' on the death of the de"eased' took &ossession of %ost of his &ersonal &ro&erty' $hi"h he still has in his &ossession' and that he has also the balan"e on said insuran"e &oli"y a%ountin to P)1'/.+.-,. 0. Plaintiffs "ontend that the a%ount of the insuran"e &oli"y beloned to the estate of the de"eased and not to the defendant &ersonally3 that' therefore' they are entitled to a &artition not only of the real and &ersonal &ro&erty' but also of the P+,',,, life insuran"e (SS45: 67! the life insuran"e &ro"eeds beloned to the estate of the de"eased 85L*: !o. 9AT(:: 1. The "ontra"t of life insuran"e is a s&e"ial "ontra"t and the destination of the &ro"eeds thereof is deter%ined by s&e"ial la$s $hi"h deal e2"lusi1ely $ith that sub;e"t. The Ci1il Code has no &ro1isions $hi"h relate dire"tly and s&e"ifi"ally to life< insuran"e "ontra"ts or to the destination of life insuran"e &ro"eeds. That sub;e"t is reulated e2"lusi1ely by the Code of Co%%er"e $hi"h &ro1ides for the ter%s of the "ontra"t' the relations of the &arties and the destination of the &ro"eeds of the &oli"y. ). The &ro"eeds of the life<insuran"e &oli"y bein the e2"lusi1e &ro&erty of the defendant and he ha1in used a &ortion thereof in the re&ur"hase of the real estate sold by the de"edent &rior to his death $ith riht to re&ur"hase' and su"h re&ur"hase ha1in been %ade and the "on1eyan"e taken in the na%es of all of the heirs instead of the defendant alone' &laintiffs "lai% that the &ro&erty belons to the heirs in "o%%on and not to the defendant alone. .. 4nless the fa"t a&&ear or be sho$n that the defendant a"ted as he did $ith the intention that the other heirs should en;oy $ith hi% the o$nershi& of the estate = in other $ords' that he &ro&osed' in effe"t' to %ake a ift of the real estate to the other heirs then he should be the e2"lusi1e o$ner of the &ro"eeds. +. (f it is established by the e1iden"e that that $as his intention and that the real estate $as deli1ered to the &laintiffs $ith that understandin' then it is &robable that their "ontention is "orre"t and that they are entitled to share e>ually $ith the defendant therein. (f' ho$e1er' it a&&ears fro% the e1iden"e in the "ase that the "on1eyan"es $ere taken in the na%e of the &laintiffs $ithout his kno$lede or "onsent' or that it $as not his intention to %ake a ift to the% of the real estate' then it belons to hi%. *:CT9(!5 The &ro"eeds of an insuran"e &oli"y belon e2"lusi1ely to the benefi"iary and not to the estate of the &erson $hose life $as insured' and that su"h &ro"eeds are the se&arate and indi1idual &ro&erty of the benefi"iary' and not of the heirs of the &erson $hose life $as insured. S5PA9AT5 :P(!(:!: