G.R. No.

L-21334        December 10, 1924

THE GOVERNMENT OF THE PHILIPPINE ISLANDS, Petitioner, vs. ANASTASIA ABADILLA, ET AL., claimants. 

THE MUNICIPALITY OF TAYABAS, ET AL., claimants-appellees, 
MARIA PALAD, ET AL., claimants-appellants.

Facts:

On January 25, 1892, Luis Palad executed a holographic will granting his wife, Dorothea Lopez, the right of exclusive use and
possession of several parcels of lands in the Province of Tayabas during her lifetime or until she remarries. The lands shall be
donated to the secondary school in Tayabas upon Dorothea’s death or second marriage. On December 3, 1896, the testator died.

Sometime in 1900, Dorothea married one Calixto Dolendo. On April 20, 1903, the testator’s collateral heirs brought an action for the
partition of the lands on the ground that Dorothea lost her right over the lands by reason of her second marriage.

During the pendency of the action, the parties arrived at an agreement delivering the lands with lot nos. 3464 and 3469 to the
Municipality of Tayabas as trustee while lot no. 3470 was left in the possession of Dorothea. The testator’s collateral heirs filed a
claim over the lands contending that the trust instituted in the will was ineffective.

Issue:

Whether or not the trust instituted in the will was effective

Ruling:

Yes. A liberal interpretation of the will revealed that the testator intended to create a trust for the benefit of the secondary school,
naming the ayuntamiento of the town or the Civil Governor of the Province as trustee. In order that a trust may be effective, there
must be a trustee and a cestui que trust. The Governor of Tayabas, as the successor of the Civil Governor under the Spanish regime,
acted as trustee in the present case.

If the trustee holds the legal title and the devise is valid, the natural heirs of the deceased testator have no remaining interest in the
land except their right to the reversion in the event the devise for some reason should fail, an event which has not yet taken place.
The intention of the testator was to have the income of the property accumulate for the benefit of the proposed school until the
same should be established.

The lands with lot nos. 3464 and 3469 shall hereby remain in the possession of the Municipality of Tayabas as trustee until the
secondary school is erected. However, the ownership of lot no. 3470 has lawfully passed to Dorothea by prescription, having held
possession of the land, adverse to all claimants, since 1904.