Trusts Presentation
This document was uploaded by user and they confirmed that they have the permission to share it. If you are author or own the copyright of this book, please report to us by using this DMCA report form. Report DMCA
Overview
Download & View Trusts Presentation as PDF for free.
More details
- Words: 2,096
- Pages: 47
TRUSTS ART. 1440-1456 NCC. By RaniB. Factor JRU- Law (Camp Crame)
Understanding Trust
1.
What is Trust?
Black ’ s Law & Phil . Law
dictionary :
Definition :
A TRUST IS A RIGHT OF PROPERTY , REAL OR PERSONAL , HELD BY ONE PARTY FOR THE BENEFIT OF ANOTHER.
New Civil Code Definition Art . 1440 . A person who establishes a trust is called the trustor ; one in whom confidence is reposed as regards property for the benefit of another person is known as the trustee ; and the person for whose benefit the trust has been created is referred to as the beneficiary .
NCC approach Art 1440 of the NCC Described and defined trust by involving 3 persons or parties: A person who establishes a trust is called the trustor ; one in whom confidence is reposed as regards property for the benefit of another person is known as the trustee ; and the person for whose benefit the trust has been created is referred to as the beneficiary .
Art. 1440 NCC, PARTIES:
INVOLVES 3 PERSONS OR
HOW
TRUST
CREATED?
Trusts are either express or implied . Express trusts are created by the intention of the trustor or of the parties . Implied trusts come into being by operation of law .
Art. 1441.
HOW CAN TRUST BE CREATED OR ESTABLISHED? EITHER EXPRESS OR IMPLIED
Art 1441
A .
Express trust are created by the intention of the trustor or of the parties
B . Implied trust come into being by the operation of law . may be resulting or constructive
EXPRESS AND IMPLIED TRUST DISTINGUISHED 1 . by NCC . Express trust is created by the intention of the trustoror of the parties , whereas , Implied trust as one that come into being by the operation of law .
Express & implied trust distinguished 2 .
by Desiderio P . Jurado Express trusts are those created by the direct and positive acts of the parties , by writing , or deed , or will or by words evidencing an intention to create a trust ., On the other hand implied trusts are those which without being expressed , are deductible frpm the nature of the transaction by operation of law as matters of equity , independently of the particular intention of the parties.
Express & implied trust distinguished 3. by Supreme Court , in Cuaycong vs . Cuaycong
If the intent to established a trust is clear , the trust is express ; If the intent to established a trust is to be taken from circumstances or other matters indicative of such intent , then the trust is
Express & implied trust distinguished 4. by NCC 1443
No express trusts concerning an immovable or any interest therein may be proved by parol evidence , while an existence of an implied trust may be proved by parol evidence .
Express & implied trust distinguished 5. by Supreme Court in Fabian vs . Fabian
Laches and prescription do not constitute a bar to enforce an express trust , at least while the trustee does not openly repudiate the trust , and make known such repudiation to the beneficiary , while laches and prescription may constitute a bar to an implied trust and no repudiation is required unless there is concealment of the facts giving rise to the trust .
Express trust 1. EXPRESS – Created by the intention of the trustor . Art . 1444 NCC . a . No particular words are required b . Clear intentions is sufficient c . Can not be proved by parol evidence – concerning immovable or any interest therein . ( art . 1443 ) d . No Trust shall fail because the trustee appointed declines the designation … art . 1445 e . Acceptance by the beneficiary is necessary . Art . 1446
Express trust Art . 1443 . No express trusts concerning
an immovable or any interest therein may be proved by parol evidence .
Express trust Art . 1444 . No particular words are
required for the creation of an express trust , it being sufficient that a trust is clearly intended .
Express trust Art . 1445 . No trust shall fail because
the trustee appointed declines the designation , unless the contrary should appear in the instrument constituting the trust .
Express trust Art . 1446 . Acceptance by the beneficiary
is necessary . Nevertheless , if the imposes no onerous condition upon beneficiary , his acceptance shall presumed , if there is no proof to contrary .
trust the be the
Governing laws of trust Art . 1442 . The principles of the general
law of trusts , insofar as they are not in conflict with this Code , the Code of Commerce , the Rules of Court and special laws are hereby adopted .
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 .
Implied trust 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 beneficial interest of the property . The former is the trustee , while the latter is the beneficiary . However , if the person to whom the title is conveyed is a child , legitimate 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 .
Sample case of impled trust Sometime in 1965 , respondent Dolores
Sandoval bought 2 lots 20 and 21 , in Dasmarinas village . But because it is the policy of the subdivision owner to prohibit the acquisition of 2 lots by a single individual , she registered lot 20 in the name of the petitioner Ricardo Huang . Dolores asked Huang to execute in her favor an absolute deed of sale in order to protect her rights as owner of lot 20 to which Huang conformed . Subsequently , Huang then , challenging Dolores ownership of the property . Upon a complaint filed by Dolores , the trial court decreed that there is an implied trust created between the parties to which the Court of Appeals agreed .
Questions? 1. Has an implied trust been created
between the parties? 2 . Has the action to compel the trustee to convey the property to cestui que trust prescribed?
Answer ART. 1448 1 . Ricardo Huang became the trustee of
lot 20 and its improvements for the benefit of Dolores as owner . Tas art . 1448 provides ; there is an implied trust when the property is sold and the legal estate is granted to one party but yje price is paid by another for the purpose of having beneficial interest of the property . A resulting trust arises because of the presumption that he who pays for a thing intends a benefit interest therein .
Implied trust Art . 1449 . There is also an implied trust
when a donation is made to a person but it appears that although the legal estate is transmitted to the donee , he nevertheless is either to have no beneficial interest or only a part thereof .
A donation made to the donee without beneficial
interest.
Implied trust Art . 1450 . If the price of a sale of
property is loaned or paid by one person for the benefit 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 its is paid . The latter may redeem the property and compel a conveyance thereof to him .
Exercise X being unable to pay the purchase price
of a house and lot for his residence has requested y , and y agreed to lend him the money on one condition , that the certificate of title be transferred to him . In Y ’ s own name for his protection and as security of the loan . Later on Y mortgaged the property to the bank without the knowledge of X . When the property became due , Y did not redeem the mortgaged and the property was advertised for sale . X retained you as his lawyer . What advice would you give your client and what legal ground provided by the code would you assert to degend his right?
Answer It is clear that in the instant problem
Art . 1450 is applicable . The law provides If the price of a sale of property is loaned or paid by one person for the benefit 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 its is paid . The latter may redeem the property and compel a conveyance thereof to him .
implied 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 benefit of the true owner .
Art. 1451
Implied trust 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 benefit of all , a trust is created by force of law in favor of the others in proportion to the interest of each .
Implied trust 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 benefit is contemplated .
Implied trust Art . 1454 . If an absolute conveyance of
property is made in order to secure the performance of an obligation of the grantor toward the grantee , a trust by virtue of law is established . If the fulfillment of the obligation is offered by the grantor when it becomes due , he may demand the reconveyance of the property to him .
Implied trust Art . 1455 . When any trustee , guardian or
other person holding a fiduciary 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 .
Implied trust
Art . 1456 . If property is
acquired through mistake or fraud , the person obtaining it is , by force of law , considered a trustee of an implied trust for the benefit of the person from whom the property comes .
Art. 1456
Implied trust
Art . 1457 . An implied
trust may be proved by oral evidence .
Bank relation to trusts
What is UITF? . Unit Investment Trust Fund a . It is a Trusts products of a trust company or council . b . Governed and Regulated by Banko Sentral ng Pilipinas BSP circular 593 c. 1
Kinds of products Peso Funds Dollar funds
Peso funds
money market fund bond fund Gs fund fixed income fund peso balanced fund Equity fund
navpu Being computed by Net Asset Value per unit against benchmark
Trust fund invested to;
Movement is volatile and risky
Investment life cycle
Relation to art 1440 This falls within the purview of express trust , however , it is more aggressive than that of the art 1440
UITF vs. Art 1440 Investor trustor Risk taker security conscous Oppurtunist circumventing ownership No guaranty of returns greater chance
of recovery not subject to prescriprion prescription
Subject to
End of presentation
Understanding Trust
1.
What is Trust?
Black ’ s Law & Phil . Law
dictionary :
Definition :
A TRUST IS A RIGHT OF PROPERTY , REAL OR PERSONAL , HELD BY ONE PARTY FOR THE BENEFIT OF ANOTHER.
New Civil Code Definition Art . 1440 . A person who establishes a trust is called the trustor ; one in whom confidence is reposed as regards property for the benefit of another person is known as the trustee ; and the person for whose benefit the trust has been created is referred to as the beneficiary .
NCC approach Art 1440 of the NCC Described and defined trust by involving 3 persons or parties: A person who establishes a trust is called the trustor ; one in whom confidence is reposed as regards property for the benefit of another person is known as the trustee ; and the person for whose benefit the trust has been created is referred to as the beneficiary .
Art. 1440 NCC, PARTIES:
INVOLVES 3 PERSONS OR
HOW
TRUST
CREATED?
Trusts are either express or implied . Express trusts are created by the intention of the trustor or of the parties . Implied trusts come into being by operation of law .
Art. 1441.
HOW CAN TRUST BE CREATED OR ESTABLISHED? EITHER EXPRESS OR IMPLIED
Art 1441
A .
Express trust are created by the intention of the trustor or of the parties
B . Implied trust come into being by the operation of law . may be resulting or constructive
EXPRESS AND IMPLIED TRUST DISTINGUISHED 1 . by NCC . Express trust is created by the intention of the trustoror of the parties , whereas , Implied trust as one that come into being by the operation of law .
Express & implied trust distinguished 2 .
by Desiderio P . Jurado Express trusts are those created by the direct and positive acts of the parties , by writing , or deed , or will or by words evidencing an intention to create a trust ., On the other hand implied trusts are those which without being expressed , are deductible frpm the nature of the transaction by operation of law as matters of equity , independently of the particular intention of the parties.
Express & implied trust distinguished 3. by Supreme Court , in Cuaycong vs . Cuaycong
If the intent to established a trust is clear , the trust is express ; If the intent to established a trust is to be taken from circumstances or other matters indicative of such intent , then the trust is
Express & implied trust distinguished 4. by NCC 1443
No express trusts concerning an immovable or any interest therein may be proved by parol evidence , while an existence of an implied trust may be proved by parol evidence .
Express & implied trust distinguished 5. by Supreme Court in Fabian vs . Fabian
Laches and prescription do not constitute a bar to enforce an express trust , at least while the trustee does not openly repudiate the trust , and make known such repudiation to the beneficiary , while laches and prescription may constitute a bar to an implied trust and no repudiation is required unless there is concealment of the facts giving rise to the trust .
Express trust 1. EXPRESS – Created by the intention of the trustor . Art . 1444 NCC . a . No particular words are required b . Clear intentions is sufficient c . Can not be proved by parol evidence – concerning immovable or any interest therein . ( art . 1443 ) d . No Trust shall fail because the trustee appointed declines the designation … art . 1445 e . Acceptance by the beneficiary is necessary . Art . 1446
Express trust Art . 1443 . No express trusts concerning
an immovable or any interest therein may be proved by parol evidence .
Express trust Art . 1444 . No particular words are
required for the creation of an express trust , it being sufficient that a trust is clearly intended .
Express trust Art . 1445 . No trust shall fail because
the trustee appointed declines the designation , unless the contrary should appear in the instrument constituting the trust .
Express trust Art . 1446 . Acceptance by the beneficiary
is necessary . Nevertheless , if the imposes no onerous condition upon beneficiary , his acceptance shall presumed , if there is no proof to contrary .
trust the be the
Governing laws of trust Art . 1442 . The principles of the general
law of trusts , insofar as they are not in conflict with this Code , the Code of Commerce , the Rules of Court and special laws are hereby adopted .
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 .
Implied trust 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 beneficial interest of the property . The former is the trustee , while the latter is the beneficiary . However , if the person to whom the title is conveyed is a child , legitimate 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 .
Sample case of impled trust Sometime in 1965 , respondent Dolores
Sandoval bought 2 lots 20 and 21 , in Dasmarinas village . But because it is the policy of the subdivision owner to prohibit the acquisition of 2 lots by a single individual , she registered lot 20 in the name of the petitioner Ricardo Huang . Dolores asked Huang to execute in her favor an absolute deed of sale in order to protect her rights as owner of lot 20 to which Huang conformed . Subsequently , Huang then , challenging Dolores ownership of the property . Upon a complaint filed by Dolores , the trial court decreed that there is an implied trust created between the parties to which the Court of Appeals agreed .
Questions? 1. Has an implied trust been created
between the parties? 2 . Has the action to compel the trustee to convey the property to cestui que trust prescribed?
Answer ART. 1448 1 . Ricardo Huang became the trustee of
lot 20 and its improvements for the benefit of Dolores as owner . Tas art . 1448 provides ; there is an implied trust when the property is sold and the legal estate is granted to one party but yje price is paid by another for the purpose of having beneficial interest of the property . A resulting trust arises because of the presumption that he who pays for a thing intends a benefit interest therein .
Implied trust Art . 1449 . There is also an implied trust
when a donation is made to a person but it appears that although the legal estate is transmitted to the donee , he nevertheless is either to have no beneficial interest or only a part thereof .
A donation made to the donee without beneficial
interest.
Implied trust Art . 1450 . If the price of a sale of
property is loaned or paid by one person for the benefit 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 its is paid . The latter may redeem the property and compel a conveyance thereof to him .
Exercise X being unable to pay the purchase price
of a house and lot for his residence has requested y , and y agreed to lend him the money on one condition , that the certificate of title be transferred to him . In Y ’ s own name for his protection and as security of the loan . Later on Y mortgaged the property to the bank without the knowledge of X . When the property became due , Y did not redeem the mortgaged and the property was advertised for sale . X retained you as his lawyer . What advice would you give your client and what legal ground provided by the code would you assert to degend his right?
Answer It is clear that in the instant problem
Art . 1450 is applicable . The law provides If the price of a sale of property is loaned or paid by one person for the benefit 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 its is paid . The latter may redeem the property and compel a conveyance thereof to him .
implied 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 benefit of the true owner .
Art. 1451
Implied trust 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 benefit of all , a trust is created by force of law in favor of the others in proportion to the interest of each .
Implied trust 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 benefit is contemplated .
Implied trust Art . 1454 . If an absolute conveyance of
property is made in order to secure the performance of an obligation of the grantor toward the grantee , a trust by virtue of law is established . If the fulfillment of the obligation is offered by the grantor when it becomes due , he may demand the reconveyance of the property to him .
Implied trust Art . 1455 . When any trustee , guardian or
other person holding a fiduciary 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 .
Implied trust
Art . 1456 . If property is
acquired through mistake or fraud , the person obtaining it is , by force of law , considered a trustee of an implied trust for the benefit of the person from whom the property comes .
Art. 1456
Implied trust
Art . 1457 . An implied
trust may be proved by oral evidence .
Bank relation to trusts
What is UITF? . Unit Investment Trust Fund a . It is a Trusts products of a trust company or council . b . Governed and Regulated by Banko Sentral ng Pilipinas BSP circular 593 c. 1
Kinds of products Peso Funds Dollar funds
Peso funds
money market fund bond fund Gs fund fixed income fund peso balanced fund Equity fund
navpu Being computed by Net Asset Value per unit against benchmark
Trust fund invested to;
Movement is volatile and risky
Investment life cycle
Relation to art 1440 This falls within the purview of express trust , however , it is more aggressive than that of the art 1440
UITF vs. Art 1440 Investor trustor Risk taker security conscous Oppurtunist circumventing ownership No guaranty of returns greater chance
of recovery not subject to prescriprion prescription
Subject to
End of presentation
Related Documents
Trusts Presentation
June 2020 7
Summary Of Trusts
June 2020 6
Assessment Charitable Trusts Institutions
June 2020 8
Unit 5- Trusts
May 2020 5
Property, Trusts, Estates
May 2020 7
Legal Lines - Wills And Trusts
October 2019 6More Documents from ""
Created By Rani, Laughing Vs Crying
June 2020 3