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ARTICLE No express trusts concerning
1443 an immovable or any interest
therein may be proved by parol
evidence.
The requirement of the law under this Article is only for
enforceability, not for validity between the parties.
The burden of proving the existence of the trust is on the party
alleging its existence.
To affect third persons, the trust must be in a public instrument and
registered in the registry of property.
Q: What is parol evidence?
A:It is an oral testimony of a witness in court
The trial court declared in a decision that S had the right to redeem
four (4) lots with a house of strong materials, and ordered B to make
the resale of the property in favor of S. After the decision had become
final and executory, B suggested that the tenants of the house pay his
rentals to S instead of to him. Not only this but when the tenants left
the house, S took possession of, and exercised acts of, ownership
over the house and B all along showed conformity thereto
No. in order for a trust to come into being, Article 1444 of the CC must be satisfied.
From the facts at hand, the high court found insufficiency. In fine, the following
elements must exist:
The lack of one is fatal to the existence of a trust. Furthermore, there must be a
present and complete disposition of the trust property, notwithstanding that the
enjoyment in the beneficiary will take place in the future. There must also be some
power of administration other than a mere duty to perform a contract although the
contract is for a third party beneficiary. A declaration of terms is essential, and these
must be stated with reasonable certainty in order that the trustee may administer, and
that the court, if called upon so to do, may enforce, the trust.(Goyanko vs UCPB)
KINDS OF EXPRESS TRUSTS:
1. Charitable Trust
2. Accumulation Trust
3. Spendthrift Trust
4. Sprinkling Trust
Q: When may a trustee sue or be sued alone?
1.Expressed
2. Implied
3. Presumed-If the granting is purely
gratuitous
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IMPLIED TRUSTS
The enumeration of the following
ARTICLE cases of implied trust does not
1447 exclude others established by the
general law of trust, but the
limitation laid down in Article
1442 shall be applicable.
WHAT IS AN IMPLIED TRUST?
Implied trusts are those 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.
Creation Intention of the trustor or parties Deducible from the nature of the
transaction or imposed by
operation of law
Proof If concerning an immovable or an May be proved by parol evidence.
interest therein, it cannot be proved by
parol evidence.
Repudiation Express repudiation is required in order Laches constitutes a bar to actions
that laches or acquisitive prescription to enforce an implied trust even
may bar an action to enforce an where there is no repudiation,
express trust. unless there is concealment
of the fact giving rise to the trust.
An express trust does not prescribe
except when the trustee repudiates the
trust.
Q:May an implied trust be converted to express
trust?
(b) such positive acts of repudiation have been made known to the cestui que trust
or the other co-owners;
(c) the evidence thereon should be clear and conclusive or convincing; and
(d) the period fixed by law has prescribed. The period will commence to run from
and after said repudiation and the knowledge thereof by the cestui que trust.
ACTION FOR RECONVEYANCE BASED ON IMPLIED TRUST
Note: The prescriptive rule applies only if the person enforcing the trust is not in
possession of the property.
However, if defendant acted in bad faith, the filing of the action for
reconveyance based on implied trust must be reckoned from the actual
discovery of the fraud where such discovery was made after the date of
registration.
THE TRUST PURSUIT RULE
There is a fundamental principle in agency that where certain
property entrusted to an agent and impressed by law with a trust in
favor of the principal is wrongfully diverted, such trust follows the
property in the hands of a third person and the principal is
ordinarily entitled to pursue and recover it so long as the property
can be traced and identified, and no superior equities have intervened.
This principle is actually one of trusts, since the wrongful conversion
gives rise to a constructive trust which pursues the property, its
product or proceeds, and permits the beneficiary to recover the
property or obtain damages for the wrongful conversion of the property.