Scribd
Upload
173 views3 pages

Understanding Trusts in Law

The document discusses the characteristics and types of trusts. A trust is a fiduciary relationship where legal title to property is held by the trustee for the benefit of the beneficiary. There are three parties to a trust: the trustor who establishes it, the trustee who holds the property, and the beneficiary for whose benefit the trust is created. Trusts are classified as express or implied, with express trusts created by law or agreement and implied trusts being either resulting or constructive trusts. Express trusts do not prescribe, while constructive trusts prescribe like other property rights.

Uploaded by

ric bol
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
173 views3 pages

Understanding Trusts in Law

The document discusses the characteristics and types of trusts. A trust is a fiduciary relationship where legal title to property is held by the trustee for the benefit of the beneficiary. There are three parties to a trust: the trustor who establishes it, the trustee who holds the property, and the beneficiary for whose benefit the trust is created. Trusts are classified as express or implied, with express trusts created by law or agreement and implied trusts being either resulting or constructive trusts. Express trusts do not prescribe, while constructive trusts prescribe like other property rights.

Uploaded by

ric bol
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
You are on page 1/ 3

Trust

(Art. 1440 – Art. 1457)

- It is the right to the beneficial enjoyment of property, the legal title to which is vested in
another

- It is a fiduciary relationship concerning property which obliges the person holding it to


deal with the property for the benefit of another

- It is a legal relationship between one person having an equitable ownership in property


and another owning the legal 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

CHARACTERISTICS OF A TRUST

a. It is a fiduciary relationship
b. Created by law or by agreement
c. Where the legal title is held by one and the equitable title or beneficial title is held by
another

Distinguished from Guardianship / Executorship

- In trust, the trustee or holder has Legal title to the property; a guardian, administrator
or executor does not have.

Distinguished from Stipulation Pour Autrui

- A trust may exist because of a legal provision or because of an agreement; a stipulation


pour autrui can arise only in the case of contracts

- A trust refers to specific property; a stipulation pour autrui may refer to other things

Art. 1440

Parties to a Trust

a. Trustor – person who established the trust


b. Trustee – holds the property in trust fro the benefit of another
c. Beneficiary or cestui que trust – the person for whose benefit the trust is created
Art. 1441

Classification of Trusts

a. EXPRESS TRUST

 Arts. 1443 to 1446

How express trusts are ended:

i. Mutual agreement by all parties


ii. Expiration of term
iii. Fulfillment of resolutory condition
iv. Rescission or annulment
v. Loss of subject matter of the trust
vi. Order of the court
vii. Merger
viii. Accomplishment of purpose of trust

b. IMPLIED TRUST

b.1. Resulting Trust

- called bare or passive trust

- there is an intent to create a trust but it is not effective as an express


trust

*Arts. 1448, 1449, 1451, 1452 and 1453

b.2. Constructive trust

- no intent to create trust but nevertheless it exists

 Arts. 1450, 1454, 1455 and 1456


DO TRUSTS PRESCRIBE?

a. Express trust

 Do not prescribe
 Means that the beneficiary can recover the property anytime
 Possession of an express trustee is not adverse

Exception:
o If there is repudiation of the same

b. Implied trust

1. Resulting trust

 Generally do not prescribe

Exception :

o If there is repudiation

2. Constructive trust

 Do prescribe
 Enforcement maybe barred by laches

You might also like