ARTICLE 1440.
A person who establishes a trust is called the trustor; one in whom confi dence is reposed
as regards property for the benefi t of another person is known as the trustee; and the person for whose
benefi t the trust has been created is referred to as the benefi – ciary
ART. 1441. Trusts are either express or implied. Ex press trusts are created by the intention of the truof
the parties. Implied trusts come into being by opera tion of law.
ART. 1442. The principles of the general law of trusts, insofar as they are not in confl ict with this Code,
the Code of Commerce, the Rules of Court6 and special laws are hereby adopted
EXPRESS TRUSTS
ART. 1443. No express trusts concerning an immov able or any interest therein may be proved by parol
evi dence.
ART. 1444. No particular words are required for the creation of an express trust, it being suffi cient that
a trust is clearly intended.
ART. 1445. No trust shall fail because the trustee ap pointed declines the designation, unless the
contrary should appear in the instrument constituting the trust.
ART. 1446. Acceptance by the benefi ciary is neces sary. Nevertheless, if the trust imposes no onerous
con dition upon the benefi ciary, his acceptance shall be pre sumed, if there is no proof to the contrary.
ART. 1447. The enumeration of the following cases of implied trust does not exclude others established
by the general law of trust, but the limitation laid down in Article 1442 shall be applicable
ART. 1448. There is an implied trust when property is sold, and the legal estate is granted to one party
but the price is paid by another for the purpose of having the benefi cial interest of the property. The
former is the trustee, while the latter is the benefi ciary. However, if the person to whom the title is
conveyed is a child, le gitimate or illegitimate, of the one paying the price of the sale, no trust is implied
by law, it being disputably presumed that there is a gift in favor of the child.10
ART. 1449. There is also an implied trust when a do nation is made to a person but it appears that
although the legal estate is transmitted to the donee, he neverthe less is either to have no benefi cial
interest or only a part thereof
ART. 1450. If the price of a sale of property is loaned or paid by one person for the benefi t of another
and the conveyance is made to the lender or payor to secure the payment of the debt, a trust arises by
operation of law in favor of the person to whom the money is loaned or for whom it is paid. The latter
may redeem the property and compel a conveyance thereof to him
ART. 1451. When land passes by succession to any person and he causes the legal title to be put in the
name of another, a trust is established by implication of law for the benefi t of the true owner.
ART. 1452. If two or more persons agree to purchase property and by common consent the legal title is
taken in the name of one of them for the benefi t of all, a trust is created by force of law in favor of the
others in pro portion to the interest of each.
ART. 1453. When property is conveyed to a person in reliance upon his declared intention to hold it for,
or transfer it to another or the grantor, there is an implied trust in favor of the person whose benefi t is
contem plated
ART. 1454. If an absolute conveyance of property is made in order to secure the performance of an
obliga tion of the grantor toward the grantee, a trust by virtue of law is established. If the fulfi llment of
the obligation is offered by the grantor when it becomes due, he may demand the reconveyance of the
property to him
ART. 1455. When any trustee, guardian or other per son holding a fi duciary relationship uses trust
funds for the purchase of property and causes the conveyance to be made to him or to a third person, a
trust is established by operation of law in favor of the person to whom the funds belong.
ART. 1456. If property is acquired through mistake or fraud, the person obtaining it is, by force of law,
con sidered a trustee of an implied trust for the benefi t of the person from whom the property comes.
ART. 1457. An implied trust may be proved by oral evidence.
