Answer
Usufruct is the real right to enjoy the property of another, with the obligation of preserving its form and substance, unless the title constituting it or the law provides otherwise (Civil Code Article 562). It splits the property into two: the usufructuary, who has the right to use the thing and receive its fruits, and the naked owner, who retains ownership but not the enjoyment. A usufruct may be constituted by law, by the will of private persons expressed in a contract or a will, or by prescription (Article 563).
Usufruct is commonly used in estate planning — an owner may, for example, donate the naked ownership of land to a child while reserving the usufruct for life, keeping the right to use the land and receive its income until death. The Supreme Court applied these principles in Moralidad v. Spouses Pernes (G.R. No. 152809, 2006), where the usufruct was held terminable once the conditions of the title constituting it were violated.
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