REVIEWER FOR TRUST
It can, however, be waived, by the failure of theopposing party to object when a parol evidenceconcering a trust of an immovable or interesttherein is being presented in court.Except for immovable or interest therein, expresstrust can be created by writing, deed, will or oraldeclaration. No particular words are required or essential for the creation of an express trust(
Kinds of Express Trust1.Charitable Trust
– accumulateincome to be reinvested by the trustee inthe trust for the period of time specified.
– to protect thebeneficiary from his imprudent spendinghabit.
– give the trustee theright to determine the incomebeneficiaries who should receive incomeeach year and the amount thereof.In order that a trustee may sue or be sued alone,it is essential that his trust be express, that is atrust created by the direct and positive acts of theparties, by some writing, deed, or will or byproceedings in court.
No trust shall fail because the trusteeappointed declines the designation, unless thecontrary should appear in the instrumentconstituting the trust.
Acceptance by the beneficiary isnecessary. Nevertheless, if the trust imposes noonerous condition upon the beneficiary, hisacceptance shall be presumed, if there is noproof to the contrary.
CHAPTER 3IMPLIED TRUSTS
The enumeration of the followingcases of implied trust does not exclude othersestablished by the general law of trust, but thelimitation laid down in Article 1442 shall beapplicable.
There is an implied trust whenproperty is sold, and the legal estate is granted toone party but the price is paid by another for thepurpose of having the beneficial interest of theproperty. The former is the trustee, while thelatter is the beneficiary.
However, if the personto whom the title is conveyed is a child,legitimate or illegitimate, of the one payingthe price of the sale, no trust is implied bylaw, it being disputably presumed that there isa gift in favor of the child.Art. 1449.
There is also an implied trust when adonation is made to a person but it appears thatalthough the legal estate is transmitted to thedonee, he nevertheless is either to have nobeneficial interest or only a part thereof.
If the price of a sale of property isloaned or paid by one person for the benefit of another and the conveyance is made to thelender or payor to secure the payment of thedebt, a trust arises by operation of law in favor of the person to whom the money is loaned or for whom its is paid. The latter may redeem theproperty and compel a conveyance thereof tohim.
When land passes by succession toany person and he causes the legal title to be putin the name of another, a trust is established byimplication of law for the benefit of the trueowner.
If two or more persons agree topurchase property and by common consent thelegal title is taken in the name of one of them for the benefit of all, a trust is created by force of lawin favor of the others in proportion to the interestof each.
When property is conveyed to aperson in reliance upon his declared intention tohold it for, or transfer it to another or the grantor,there is an implied trust in favor of the personwhose benefit is contemplated.
If an absolute conveyance of propertyis made in order to secure the performance of anobligation of the grantor toward the grantee, atrust by virtue of law is established. If thefulfillment of the obligation is offered by thegrantor when it becomes due, he may demandthe reconveyance of the property to him.
When any trustee, guardian or other person holding a fiduciary relationship uses trustfunds for the purchase of property and causesthe conveyance to be made to him or to a thirdperson, a trust is established by operation of lawin favor of the person to whom the funds belong.
ESP Joven | LPU College of Law, Makati2