Cabana, Adrian C.

Doctrine : Trust on a will

Case Title :  Paz Garcia vda de Mapa et.,al vs CA

G.R. No. L-38972, September 28, 1987

Facts

On January 16, 1965, the petitoners Paz GarciaVda.deMapa et. al.

instituted a civil case before the Court of First Instance of Manila to recover the
properties left by Concepcion Mapa de Hidrosollo from the estate of Ludovico
Hidrosollo which is also subject to a special proceedings in the same court.
They claimed that the deceased Concepcion Mapa de Hidrosollo, in her last will
and testament, instituted Ludovico Hidrosollo as a universal heir with the
obligation as a trustee to the residue of her estate and to hold the same in trust
for the petitioners and the private respondents.

The respondents, in their answer, denied the existence of trust and

alleged that Ludovico Hidrosollo, as the surviving spouse of Concepcion Mapa
de Hidrosllo, became the latter's universal heir when she died without
ascendants or descendants, so that the controverted properties became part of
the estate of Ludovico Hidrosollo. They further alleged that the civil case
instituted by the petitioners was barred by an order denying their motion to
intervene in the special proceedings.

In disposing the case, the lower court ruled that a trust was created and
the denial order of the petitioner's motion to intervene did not deprive them to
institute a separate civil action to recover what pertains to them in their own
right. The respondents moved for reconsideration but the same was denied
prompting them to file an appeal before the Court of Appeals. Their appeal to
the appellate court proved fruitful as the Court of Appeals reversed the decision
of the lower court and ruled that there is no trust nor
fideicommissarysubstition created in the will of Concepcion Mapa de Hidrosollo

ISSUE:
Whether or not a trust was created

HELD

The Supreme Court ruled that there was a trust created. Although the
word "trust" itself does not appear in the will, the testatrix intent to create one
is nonetheless demonstrated by the stipulations in her will.
 In designating her husband Ludovico Hidrosollo as a sole and universal
heir with the obligation to deliver the properties to the petitioners and private
respondents, she intended that the legal title should vest in him and in
significantly referring to petitioners and private respondents as beneficiarios,
she intended that the beneficial or equitable interest over the properties should
repose in them.

Article 1443 of the Civil Code also provides that No particular words are
required for the creation of an express trust, it being sufficient that a trust is
clearly intended.

However, the trust created by Concepcion should be limited only to the

free portion of her estate.