Professional Documents
Culture Documents
to a Trust Relationship
Trustor: establishes the trust
Trustee: holds the property in trust for the benefit of another
Beneficiary: the person form whose benefit the trust has
been created
How
Created
Formal
-ities
Prescrip
-tion
Other
Notes
EXPRESS TRUSTS
IMPLIED TRUSTS
Created by the intention of
Created by operation of law
the trustor or of the parties
(based on equity)
(need
no
particular
wordings)
Express
trust
over
an
May be proved by parol
immovable or any interest
evidence (whether real or
may not be proved by parol
personal property is involved)
evidence
GR: imprescriptible
An action for reconveyance of
Exception: if the trustee has
registered land based on an
expressly
repudiated
the
implied trust prescribes in 10
trust
years.
Capacity of Parties to an
Examples of Implied Trusts
Express Trust
1. purchase of property where
1. Trustor: must have legal
beneficial title in 1 person,
capacity
to
convey
but price paid by another
property
person (exception: if the
2. Trustee:
must
be
person to whom title is
capacitated to accept the
conveyed is a child, it is
trust
disputably presumed to be a
3. Beneficiary:
must
be
gift)
capacitated
to receive 2. purchase of property where
gratuitously
from
the
title is placed in the name of
trustor
person who loaned the
purchase price
Note:
Acceptance
by 3. 2 or more persons purchase
beneficiary
of
gratuitous
property jointly, but places
trust is not subject to the
title in 1 of them
rules for the formalities of 4. donation of property to a
donations.
donee who shall have no
beneficial title
How Express Trusts are 5. land passes by succession
Ended
but heir places title into
1. Mutual agreement by all
trustee
the parties
6. property conveyed to person
2. expiration of the term
merely as holder thereof
3. fulfilment of resolutory 7. absolute
conveyance
of
condition
property is effected only as a
4. rescission or annulment
means
to
secure
5. loss of subject matter of
performance of obligation of
the trust (physical loss or
the grantor
legal impossibility)
8. when trust fund used to
6. order of the court (as
purchase property w/c is
when the purpose of the
registered in trustees name
trust is being frustrated)
9. when property is acquired
7. merger
through mistake or fraud
8. accomplishment of the
Note: this list of implied trusts
purpose of the trust
is not exclusive
RESULTING TRUST
There is an intent to create
a trust but it is not effective
as an express trust
GR: imprescriptible
Exception: if the trustee has
expressly repudiated the
trust
SIENNA A. FLORES
CONSTRUCTIVE TRUST
No intention to create a trust is
present, but a trust is nevertheless
created by law to prevent unjust
enrichment or oppression
Prescribes in 10 years counted from the
date the trustee set up a title adverse
to that of the beneficiary
CASE DOCTRINES
ESCOBAR VS. LOCSIN
A trust is sacred & inviolable. The courts have therefore
shielded fiduciary relations against every manner of chicanery
or detestable design cloaked by legal technicalities. The
Torrens system was never calculated to foment betrayal in
the performance of a trust.
The action could not be dismissed on the ground that the period
of 1 year for the review of the decree has elapsed, & plaintiff
had not availed herself of this remedy. The complaint did not
seek to review the decree or the reopening of the cadastral
case, but the enforcement of the trust. Hence, Sec. 38 of the
Land Registration Act does not apply.
JULIO VS. DALANDAN
The document itself created an express trust, and given the
fiduciary relation w/c is recognized by the defendants, they
may not invoke the statute of limitations as a bar to plaintiffs
action.
Where an express trust is created, no evidence is necessary for
its recognition, considering that no particular words are
required for the creation of an express trust, it being
sufficient that a trust is clearly intended.
Technical or particular forms of words or phrases are not
essential to the manifestation of intention to create a trust or
to the establishment thereof; nor would the word trust or
trustee be essential to its constitution.
Conversely, the mere fact that the word trust or trustee was
employed wouldnt necessarily prove an intention to create a
trust. What is important is whether the trustor manifested an
intention to create the kind of relationship w/c in law is
known as a trust. It is not important that the trustor should
know that the relationship w/c he intends to create is called a
trust, & w/n he knows the precise characteristics of the
relationship w/c is called a trust.
GERONIMO AND ISIDRO VS. NAVA AND AQUINO
There was a constructive trust created, in the sense that
although appellants had the naked title issued in their names,
& w/c they retained, nevertheless, they were to hold said
property in trust for appellees to redeem, subject to the
payment of the redemption price.
In a constructive trust, prescription may apply only where the
trustee asserts a right adverse tot that of the cestui que
trust, such as, asserting acts of ownership over the property
being held in trust.
An express trust is not subject to prescription.
LORENZO VS. PASADAS
The requirements for a valid testamentary trust are:
o
Sufficient words to raise a trust
o
A definite subject
o
A certain or ascertained object
A trustee, no doubt, is entitled to receive a fair compensation
for his services. But from this it does not follow that the
compensation due him may lawfully be deducted in arriving
at the net value of the estate subject to tax. There is not
statute in the Philippines w/c requires trustees commissions
to be deducted in determining the net value of the estate
subject to inheritance tax.
GAMBOA VS. GAMBOA
A person who has held legal title to land, coupled w/ possession
& beneficial use of the property for more than 10 years, will
not be declared to have been holding such title as trustee for
himself & his brothers & sisters upon doubtful oral proof
tending to show a recognition by such owner of the alleged
rights of his brothers & sisters to share in the produce of the
land.
Possession in fact by 1 who holds the legal title to land must be
qualified as a true legal possession. Such owner & occupant
cannot be required to demonstrate that his possession is, or
has been adverse, as against a mere claimant who has
TRUSTS
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SIENNA A. FLORES
TRUSTS
-3-
SIENNA A. FLORES
TRUSTS