1

CIVIL LAW REVIEWER

SAINT LOUIS UNIVERSITY BAR OPERATIONS

TRUST
GENERAL PROVISIONS Art. 1940 Concept of Trust Trust - the legal relationship between one person having an equitable ownership in property and another owning the 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 Persons involved: A. Trustor person who establishes the trust; B. Trustee whom the confidence is reposed as regards property for the benefit of another person; C. Beneficiary person whose benefit the trust has been created. Object of Trust Consists if property actually in existence in which the trustor has a transferable interest or title although it may, as a rule, be any kind of transferable property. Art. 1441: Classification of Trust As to effectivity: a. Testamentary Trust b. Trusts Inter Vivos (Living Trust) As to Creation a. Express (Art. 1443-1446) b. Implied (Art. 1447-1457) - Resulting - Constructive

Express Trust is created by direct and positive act of the trustor, by some writing, deed, will or oral declaration. Acceptance of trust by a trustee is necessary to charge him with the office of the trustee and the administration of the trust and to vest the legal title to him. However, his acceptance of the trust is not necessary to its existence and validity, since if he declines the trust, the courts will appoint a trustee to fill the office that he declines. Acceptance of or assent to the trust by the beneficiary is essential to the creation and validity of a trust. The trust being beneficial to the beneficiary, his acceptance is presumed if there is no proof to the contrary. However, if the trust imposes some onerous condition, acceptance must be shown. Such acceptance may be express or implied.

IMPLIED TRUST Definition: Those trust which, without being express, are deducible from the nature of the transaction as matters of intent, or which are superinduced on the transaction by operation of law, as matters of equity, independently of the particular intention of the parties. Kinds of Implied Trust: a. Resulting trust Trust which is raised or created by the act or construction of law. b. Constructive Trust Trust created not by any words, either expressly or impliedly, evincing a direct intention but by operation of law against one who, by fraud, duress or abuse of confidence obtains or holds the legal right to property which he ought not, in equity and good conscience to hold. Enumeration of cases of implied trust under articles 1448-1456 are not exclusive. Instances or cases of Implied Trusts: a. Sale to a party but the price is paid by another b. Donation to a person but beneficial interest is vested to another c. Conveyance of Property so that it may serve as security d. Legal title to land inherited by heir placed in the name of another e. Legal title to property purchased taken in one co-owner f. Conveyance under a promise to hold for, or transfer to another g. Purchase of property with use of trust funds

EXPRESS TRUST Definition: Trust which can come into existence only by the execution of an intention to create it by the trustor or parties. Elements of Express Trust: a. A competent trustor and trustee; b. An ascertainable trust res; and c. Sufficiently certain beneficiaries d. Declaration of terms stated reasonable certainty.

with

No express Trust concerning an IMMOVABLE may be proved by PAROL evidence

Prepared by the CIVIL LAW SECTION Chief NORBERT OBEDOZA Assistant Chief JOHN PAUL MARTIN Members LIWLIWA AGBAYANI, ELMER PEDROZO, ALLAN ANCHETA, JONATHAN FERNANDEZ, GARY DE GUZMAN, EIGEE GALACGAC and YVALLONE LAMATON. All Rights Reserved by the SAINT LOUIS UNIVERSITY COLLEGE OF LAW BAR OPERATIONS 2003.

2
h. Acquisition of property mistake or fraud through

SAINT LOUIS UNIVERSITY BAR OPERATIONS

CIVIL LAW REVIEWER

PROOF OF IMPLIED TRUST It may be proved by ORAL EVIDENCE. PROOF OF EXPRESS TRUST It may NOT be proved by PAROL or ORAL EVIDENCE.

Prepared by the CIVIL LAW SECTION Chief NORBERT OBEDOZA Assistant Chief JOHN PAUL MARTIN Members LIWLIWA AGBAYANI, ELMER PEDROZO, ALLAN ANCHETA, JONATHAN FERNANDEZ, GARY DE GUZMAN, EIGEE GALACGAC and YVALLONE LAMATON. All Rights Reserved by the SAINT LOUIS UNIVERSITY COLLEGE OF LAW BAR OPERATIONS 2003.