TRUSTEES

ANNA KRISTINE OLA

RULE 98
 TRUSTEE as distinguished
from Executor/Administrator
TRUSTEE
An instrument or agent of the cestui que trust,
who acquires no beneficial interest in the
estate; he merely took the legal estate only as
the proper execution of the trust required; and,
his estate ceases upon the fulfilment of the
testator‘s wishes, in which case, the same vest
absolutely in the beneficiary.
EXECUTOR/ADMINISTRATOR
An executor is the person named in the will to
administer the decedent‘s estate and carry out
the provisions thereof.
An administrator is the person appointed by the
court to administer the estate where the
decedent died intestate, or where the will was
void and not allowed to probate, or where no
executor was named in the will, or the executor
named therein in incompetent or refuses to
serve as such.
 TRUSTEE as distinguished
from Executor/Administrator
TRUSTEE
An association or corporation authorized to
conduct the business of a trust company in the
Philippines may appointed as trustee of an
estate in the same manner as an individual
(Art. 1060, CC).
EXECUTOR/ADMINISTRATOR
An association or corporation authorized to
conduct the business of a trust company in the
Philippines may appointed as executor or
administrator of an estate in the same manner
as an individual (Art. 1060, CC).
 TRUSTEE as distinguished
from Executor/Administrator
TRUSTEE EXECUTOR/ADMINISTRATOR
Duties are usually governed by the intention of
the trustor or the parties if established by a
contract.

Duties may cover a wider range. Duties are fixed and/or limited by law (Rule 84).
 TRUSTEE as distinguished
from Executor/Administrator
TRUSTEE EXECUTOR/ADMINISTRATOR

ACCOUNTS Account must be filed annually Accounts are filed at such times
and must be under oath are may be required by the court.

Only the initial and final accounts

are required to be made under
oath
WHERE TO FILE Will: The RTC which admitted the
will to probate MTC or RTC depending on the
Written instrument: RTC of the gross value of the estate.
province where the property is
situated.
 TRUSTEE as distinguished
from Executor/Administrator
TRUSTEE EXECUTOR/ADMINISTRATOR

ACTS OF On petition and after due notice Upon application to the court with
ADMINISTRATION and hearing, the court may order written notice to the heirs,the
the sale or encumbrance of the executor may sell,encumber,or
property held in trust if it is mortgage the property if it is (1)
necessary or expedient. The necessary for the purpose of paying:
proceeds shall be reinvested or (a) debts, (b) expenses of
applied in such a manner as will administration,( c ) legacies,or (2)for
best effect the objectives of the the preservation of the property,or (3)
trust. beneficial to the heirs,legatees,or
devisees
ORDER OF SALE No time limit No time limit
 TRUSTEE as distinguished
from Executor/Administrator
TRUSTEE
WHEN APPOINTMENT To carry into effect the provisions of
IS MADE the will or a written instrument
BOND General Rule: trustee must file a
bond. Failure to file a bond shall be
deemed a refusal or resignation
from the trust.
Exemptions:
• When the testator has directed
or requested such exemption.
• When all persons beneficially
interested in the trust,being of
full age,request the exemption.
EXECUTOR/ADMINISTRATOR
For the settlement of the decedent’s
estate
Executor or administrator is not
exempted from filing a bond even the
will provides for the exemption. Where
the will exempt the executor from
filing a bond, a bond shall
nevertheless be filed conditioned on
the payment of the decedent’s debt.
 TRUSTEE as distinguished
from Executor/Administrator
TRUSTEE EXECUTOR/ADMINISTRATOR

TERMINATION Upon turning over the property to Upon payment of the debts of the
the beneficiary after the trust has estate and the distribution of the
expired property to the heirs
OBLIGATION TO PAY Required to pay debts of the estate No obligation to pay the debts of the
DEBTS beneficiaries of the trustor
 TRUSTEE as distinguished
from Executor/Administrator
TRUSTEE
Grounds for removal a) Insanity;
b)      Incapability of discharging
trust or evidently unsuitable therefor
(Sec. 8, Rule 98);
c)      Neglect in the performance of
his duties;
d)     Breach of trust displaying a
want of fidelity, not mere error in the
administration of the trust;
e)      Abuse and abandonment of
the trust;
EXECUTOR/ADMINISTRATOR
a)      Neglect to render an account
and settle the estate according to law;
b)      Neglect to perform an order or
judgment of the court;
c)      Neglect to perform a duty
expressly provided by these rules;
d)     Absconds, or becomes insane, or
e)      otherwise incapable or
unsuitable to discharge trust;
f)       (e) Fraud or misrepresentation
 TRUSTEE as distinguished
from Executor/Administrator
TRUSTEE EXECUTOR/ADMINISTRATOR

Grounds for removal f)       Refusal to recognize or

administer the trust;
g)      Failure or neglect or
impropriety in investment of the trust
estate as to give rise to waste of
trust property;
h)      Failure to file accounts, and
failure of one co-trustee to keep
himself informed of the conduct of
the other in the administration of the
trust.
 Conditions of the bond
The following conditions shall be deemed to be part of the bond whether
written therein or not;

● (a) trustee will make and return to the court, at such time as it
may order, a true inventory of all the real and personal estate
belonging to him as trustee, which at the time of the making of
such inventory shall have come to his possession or knowledge;
● (b) That he will manage and dispose of all such estate, and
faithfully discharge his trust in relation thereto, according to law
and the will of the testator or the provisions of the instrument or
order under which he is appointed;
 Conditions of the bond
● (c) That he will render upon oath at least once a year until his
trust is fulfilled, unless he is excused therefrom in any year by the
court, a true account of the property in his hands and the
management and disposition thereof, and will render such other
accounts as the court may order;

● (d) That at the expiration of his trust he will settle his account in
court and pay over and deliver all the estate remaining in his
hands, or due from him on such settlement, to the person or
persons entitled to thereto.
Requisites for the removal and resignation of a
trustee
1. Upon petition to the proper RTC if
such removal appears essential in
the interest of the petitioner. ;
2. may resign his trust if it appears to
the court proper to allow such
resignation.
3. whose acts or omissions are such as
to show a want of reasonable fidelity
will be removed by the court
Grounds for removal and resignation of a trustee

1. The trustee is insane;

2. incapable of discharging his trust or
evidently unsuitable therefore;
3. where trust funds are to be invested by
the trustee, neglect to invest
constitutes of itself a breach of trust
and is a ground for removal.
 Extent of authority of trustee
The powers of a trustee appointed by a
Phillipine court cannot extend beyond the
confines of the territory of the Republic of the
Philippines.This is based on the principle that
his authority cannot extend beyond the
jurisdiction of the country under whose courts
he was appointed.

Also, in the execution of the trust, the trustee is

bound to comply with the direction contained in
the trust instrument defining the extent and
limits of his authority, and the nature of his
power and duties.
ESCHEATS
ANNA KRISTINE OLA
RULE 91

You can enter a subtitle

here if you need it
 When and where to file
WHEN TO FILE:  
Upon the death of the deceased

WHERE TO FILE:

Regional Trial Court of the province where the deceased last resided or
in which he had estate, if he resided out of the Philippines
 Who may file the petition
 
 Solicitor General or;

 His representative in behalf of the Republic of the

Philippines.
 Requisites for filing of petition
 
(a) That a person died intestate;

(b) That he left no heirs or person by law entitled to the same;

and

(c) That the deceased left properties (City of Manila vs.

Archbishop of Manila, 36 Phil. 815).
 Remedy of respondent against petition;

File a motion to dismiss for failure to state a

cause of action where the petition for
escheat does not state facts that entitle the
petitioner to the remedy prayed for.

The defendant can cite other grounds for

dismissal under the rules of court.
 Filing of Claim to Estate (Sec. 4, Rule 91)

Within 5 years from date of judgment.

 FLOW CHART: ESCHEAT
File Petition
 Where decedent last resided
 Where decedent had estate, if he was
not a resident of the Philippines
Court Order
PETITIONER: Solicitor General or his
Resident-Decedent
representative
 Assign personal estate to the municipality or city where
deceased last resided
 Assign real estate to the municipalities or cities
Court Order respectively in which the same is situated
 Fix a date and place for the hearing Non-resident Decedent
o Not more than 6 months after the entry  Assign whole estate to the respective municipalities or
of the order cities where the same is located.
 
Publication  
Once a week for 6 consecutive weeks
File Claims
 Devisee, legatee, heir, widow, widower, or other person
Hearing entitles to such estate
1. Proof of Publication  File a claim within 5 years from the date of judgement
PETITIONER MUST ESTABLISH: Payment of debts and charges
 
1. Person died intestate
2.Seized of real or personal property in the
Philippines
3. Leaving no heir or person entitled to the same