FAMILY TRUST AGREEMENT
This agreement made as of between:
MR. ERIK D. CRUZ, single, of legal age, residing at P-1, Sugod, Valencia City, Province of
Bukidnon, 8709, referred herein as TRUSTOR, and MS. JOAN R. CRUZ, single, of legal
age, residing at Lumbo, Valencia City, Bukidnon herein referred as the TRUSTEE,
establishes and declares the following trust:
WHEREAS, the Trustor is about to convey or cause to be conveyed a certain real property
to the trustee, and the Trustee has agreed to accept certain real property in the trust under
the terms and conditions set forth below.
NOW, THEREFORE, the parties, intending to be legally bound hereby agree the following:
I. OBJECTS AND PURPOSES OF TRUST
The purpose of this trust is for the Trustee to take and hold title to the property conveyed to
the Trustee and to preserve the same until its sale or other disposition.
The Trustee shall not undertake any activity which is not strictly necessary to the attainment
of the foregoing objects and purposes, nor shall the Trustee transact business within the
meaning of applicable law, or any other law, nor shall this Trust Agreement be deemed to
be, or create or evidence the existence of a corporation, de facto or de jure, or any other
type of business trust, or an association like a corporation, or a co-partnership or joint
venture by or between the Trustee and the Beneficiaries.
II. TRUST PROPERTY
The Trustor is about to convey or cause to be conveyed to the Trustee in trust a Parcel of
Land situated at Brgy. San Jose, Malaybalay City with an area of SIXTY THREE
THOUSAND THREE HUNDRED FIFTY FOUR (63, 354) SQUARE METERS covered with
OCT NO.T-10978. This property, together with any property later added to the trust, shall be
designated as the "Trust Property". The Trustee will hold the Trust Property according to the
terms and conditions of this Trust Agreement for the purposes, terms and conditions
contained herein until such time as all of the Trust Property has been sold or otherwise
conveyed, or until this trust has been terminated.
III. POWERS AND DUTIES OF TRUSTEE
The Trustee shall have all of the powers allowed to him by the provisions of the law
governing this Trust. The Trustee shall specifically have the power to make and execute
contracts for the lease or sale of the Trust Property, mortgages secured by the Trust
Property, option agreements for the sale or lease of the Trust Property and to otherwise
dispose of the Trust Property as the Trustee shall be directed by the TRUSTOR. The
Trustee shall exercise his powers only upon the written direction of a majority in interest of
the Beneficiaries.
IV. COMPENSATION OF TRUSTEE
The Trustee shall be compensated for his actions as Trustee with 3% (three percent) of the
total selling price of the property. The Trustee shall be promptly reimbursed by the Trustor
for expenses incurred by the Trustee in the administration of the Trust. The Trustee shall
have a lien on the Trust Property for any unpaid compensation or un-reimbursed expenses.
V. LIABILITY OF TRUSTEE
The Trustee shall not be personally liable for any obligation of the Trust. The Trustee and
any successor Trustee shall not be required to give a bond. The Trustee is liable only for his
own actions and then only as a result of his own gross negligence or bad faith.
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VI. RESIGNATION AND SUCCESSOR
The Trustee may resign by giving written notice to the Trustor of his intention to resign
fifteen (15) days before the effectivity date. The Trustor shall have the power to elect a
successor trustee. A successor Trustee shall have all of the rights, duties and powers of the
original Trustee as if the successor Trustee was the original Trustee. The removal,
resignation or death of the Trustee shall not affect the lien of the Trustee upon the Trust
Property for compensation or expenses owed to the Trustee.
VII. INTEREST OF TRUSTOR
The interests of the Trustor shall consist solely of:
(a) The right to lease, manage and control the Trust Property;
(b) The right to direct the Trustee with regard to the disposition of the title to the Trust
Property; and
(c) The right to receive the profits, earnings, avails and proceeds from the rental, sale
mortgage or other disposition of the Trust Property.
The foregoing rights of the Trustor are hereby declared to be personal property and upon his
death shall be transferred to the Beneficiary. The death of any Trustor shall not affect nor in
any way diminish or alter the powers of the Trustee. The Trustor shall have no right, title or
interest, whether legal or equitable, in the real property which is held as Trust Property.
VIII. BINDING EFFECT
This Agreement shall be binding upon and inure to the benefit of the Beneficiaries, any
successor trustee, the Trustor, and the Trustor’s successors, heirs, executors, administrators
and assigns.
IX. ANNUAL STATEMENTS
The Trustee shall be required to furnish annual statements to the Trustor of the income and
expenses of the Trust for each calendar year. The statements shall be provided to the
Trustor no later than January 31st of the following year.
X. TERMINATION
This Trust may be terminated fifteen (15) days after the date upon which the Trustor agrees
in writing to said termination. The Trustor shall immediately give the Trustee written notice of
the effective date of termination. The Trustee shall execute any and all documents
necessary to effectuate the transfer of the Trust Property to the Trustor as their interest may
appear.
IN WITNESS WHEREOF, the parties have caused this instrument to be signed by on the
date and at the place first above written.
SGD.ERIK D. CRUZ SGD.JOAN R. CRUZ
(TRUSTOR) (TRUSTEE)
Signed in the presence of:
_________________________ ___________________________
Witness Witness
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ACKNOWLEDGMENT
REPUBLIC OF THE PHILIPPINES )
Valencia City )
BEFORE ME, a Notary Public in the City of Valencia, this 4th day of October 2020,
personally appeared:
Names Government-Issued ID Date/ Place of Issue
Erik D. Cruz UMID#234567543 FEB. 2016/Valencia City
Joan R. Cruz PRC#5678423 Jan. 13, 2019/ Davao City
known to me be the same person who executed the forgoing instrument and acknowledged
to me that the same is his/her own voluntary act.
The instrument, which refers to as the Family Trust Agreement consists of 3 pages
including this page on which this acknowledgment is written has been signed by the parties.
WITNESS my hand and seal on date, year and place above written.
Sgd. Atty. James P. Uy
Notary Public, Valencia City, Bukidnon
Roll of Attorney’s No.: 76
PTR No.: 187966 issued on Jan. 12, 2020
IBP No. 2456
Doc No.245
Page No.54
Book No.: 25
Series of 2020
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