Trust

Definition and Nature

It is the fiduciary relationship between one person having
an equitable ownership in property and another owning
the legal title to such property, the equitable ownership
of the former entitling him to the performance of certain
duties and the exercise of certain powers by the latter for
the benefit of the former.

This relationship implies confidence in a relationship that

is fiduciary in character. Since it is founded in equity, it
can never result from acts violative of law. (Example:
Trust cannot result from an arrangement wherein an
alien purchases a property thru the instrument of another
person which is vested with the legal title)

Parties in a trust and nature (express)

1. The trustor – the person who intentionally
creates the trust. He is the one who transfer
legal title to a person for the benefit of a third
party who owns the equitable title.

The trustor may be a beneficiary at the same

time as when he transfers legal title to the
trustee for a period of time or for a certain
purpose and has stipulated that the legal title
would be vested back to him after the lapse of
the agreed period or performance of the agreed
purpose.

The trustor may also be a trustee at the same

time as when
2. The trustee – the person who takes and holds
the legal title to the property solely for the benefit
of another, imposed upon him are certain
powers and duties.
3. The beneficiary or cestui que trust – the person
who has equitable title or interest in the property
and enjoys the benefit of administration of the
trust by the trustee.