trusts presentation

8/14/2019 TRUSTS Presentation

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TRUSTSRUSTSART. 1440-1456 NCC.

By RaniB. Factor

JRU- Law (Camp Crame)


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Understanding Trust


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. What is Trust? & .lack s Law Phil Law:ictionary :efinition TRUST IS A, ,IGHT OF PROPERTY REAL OR PERSONALELD BY ONE PARTY FOR THE BENEFIT OFANOTHER .


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New Civil Code Definition

. .rt 1440 A person whostablishes a trust is;alled the trustor one inhom confidence is reposeds regards property for theenefit of another person is

;nown as the trustee andhe person for whose benefithe trust has been createds referred to as the.eneficiary


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NCC approach Art 1440 of the NCC Described and defined trust by involving 3

:persons or parties

person who establishes a trust is;alled the trustor ne in whom confidence is reposed asegards property for the benefit of ;nother person is known as the trustee nd the person for whose benefit therust has been created is referred to.s the beneficiary


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Art. 1440 NCC, INVOLVES 3 PERSONS ORPARTIES:

O S C A


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HOW TRUST CREATED

Art. 1441. rusts are either.xpress or impliedxpress trusts are createdy the intention of the .rustor or of the partiesmplied trusts come into .eing by operation of law


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HOW CAN TRUST BE CREATED ORESTABLISHED?

ITHER EXPRESS OR IMPLIED Art 1441

. Express trust are created byhe intention of the trustor orf the parties

. Implied trust come into.eing by the operation of law

ay be resulting orconstructive


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EXPRESS AND IMPLIED

TRUST DISTINGUISHED . .by NCC xpress trust is createdy the intention of therustoror of the

, ,arties whereasmplied trust as onehat come into being byhe operation of law


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Express & implied trust

distinguished . .by Desiderio P Jurado xpress trusts are those created by the,irect and positive acts of the parties

, ,y writing or deed or will or by wordsvidencing an intention to create a. ,rust On the other hand implied trusts,re those which without being expressedre deductible frpm the nature of theransaction by operation of law as,atters of equity independently of thearticular intention of the parties .


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distinguished .3 , .y Supreme Court in Cuaycong vsCuaycong f the intent to,stablished a trust is clear;he trust is express If thentent to established a trusts to be taken fromircumstances or otheratters indicative of such

,ntent then the trust is


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distinguished .4 y NCC 1443 o express trusts concerning anmmovable or any interest therein may be

,roved by parol evidence hile an existence of an implied trust.ay be proved by parol evidence


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distinguished5 . .y Supreme Court in Fabian vs Fabian aches and prescription do notonstitute a bar to enforce an express

,rust at least while the trustee does,ot openly repudiate the trust and makenown such repudiation to the,eneficiary while laches andrescription may constitute a bar to anmplied trust and no repudiation isequired unless there is concealment of.he facts giving rise to the trust


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Express trust1. XPRESS Created by the intention of the.rustor . .rt 1444 NCC . No particular words are required . Clear intentions is sufficient . Can not be proved by parolvidence concerning immovable or any. ( . )nterest therein art 1443 . No Trust shall fail because therustee appointed declines the .esignation art 1445 . Acceptance by the beneficiary. .s necessary Art 1446


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Express trust . .rt 1443 No express trusts concerningn immovable or any interest therein.ay be proved by parol evidence


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Express trust . .rt 1444 No particular words areequired for the creation of an express,rust it being sufficient that a trust.s clearly intended


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Express trust . .rt 1445 No trust shall fail becausehe trustee appointed declines the,esignation unless the contrary shouldppear in the instrument constituting.he trust


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Express trust . .rt 1446 Acceptance by the beneficiary. ,s necessary Nevertheless if the trustmposes no onerous condition upon the,eneficiary his acceptance shall be,resumed if there is no proof to the.ontrary


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Governing laws of trust . .rt 1442 The principles of the general,aw of trusts insofar as they are not,n conflict with this Code the Code of,ommerce the Rules of Court and special.aws are hereby adopted

. .rt 1447 The enumeration of theollowing cases of implied trust doesot exclude others established by the,eneral law of trust but the limitationaid down in Article 1442 shall be.pplicable


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Implied trust . .rt 1448 There is an implied trust when,roperty is sold and the legal estates granted to one party but the prices paid by another for the purpose ofaving the beneficial interest of the. ,roperty The former is the trustee .hile the latter is the beneficiary,owever if the person to whom the title

,s conveyed is a child legitimate or,llegitimate of the one paying the,rice of the sale no trust is implied,y law it being disputably presumedhat there is a gift in favor of the.hild


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Sample case of impled

trust ,ometime in 1965 respondent Dolores,andoval bought 2 lots 20 and 21 in.asmarinas village But because it is theolicy of the subdivision owner to prohibithe acquisition of 2 lots by a single,ndividual she registered lot 20 in the.ame of the petitioner Ricardo Huangolores asked Huang to execute in her favorn absolute deed of sale in order torotect her rights as owner of lot 20 to

. ,hich Huang conformed Subsequently Huang,hen challenging Dolores ownership of the.roperty Upon a complaint filed by Dolores, he trial court decreed that there is anmplied trust created between the parties.o which the Court of Appeals agreed


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Questions?1. as an implied trust been createdetween the parties? . Has the action to compel the trustee

o convey the property to cestui querust prescribed?


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Answer ART. 1448 . Ricardo Huang became the trustee ofot 20 and its improvements for the. .enefit of Dolores as owner Tas art;448 provides there is an impliedrust when the property is sold and theegal estate is granted to one partyut yje price is paid by another forhe purpose of having beneficial

.nterest of the property A resultingrust arises because of the presumptionhat he who pays for a thing intends a.enefit interest therein


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Implied trust . .rt 1449 There is also an implied trusthen a donation is made to a person butt appears that although the legal,state is transmitted to the donee heevertheless is either to have noeneficial interest or only a part.hereof

A donation made to the donee without beneficial.interest


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Implied trust . .rt 1450 If the price of a sale ofroperty is loaned or paid by oneerson for the benefit of another andhe conveyance is made to the lender or ,ayor to secure the payment of the debttrust arises by operation of law inavor of the person to whom the money.s loaned or for whom its is paid The

atter may redeem the property and .ompel a conveyance thereof to him


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Exercise being unable to pay the purchase pricef a house and lot for his residence,as requested y and y agreed to lend,im the money on one condition thathe certificate of title be transferred. o him In Y s own name for his .rotection and as security of the loanater on Y mortgaged the property to.he bank without the knowledge of X,hen the property became due Y did notedeem the mortgaged and the property.as advertised for sale X retained you.s his lawyer What advice would youive your client and what legal groundrovided by the code would you asserto degend his right?


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Answer t is clear that in the instant problem. .rt 1450 is applicable The lawrovides If the price of a sale ofroperty is loaned or paid by oneerson for the benefit of another andhe conveyance is made to the lender or ,ayor to secure the payment of the debttrust arises by operation of law in

avor of the person to whom the money.s loaned or for whom its is paid Theatter may redeem the property and .ompel a conveyance thereof to him


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implied . .rt 1451 When land passes by successiono any person and he causes the legal ,itle to be put in the name of anothertrust is established by implicationf law for the benefit of the true.wner


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Art. 1451


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Implied trust . .rt 1452 If two or more persons agreeo purchase property and by commononsent the legal title is taken in theame of one of them for the benefit of,ll a trust is created by force of lawn favor of the others in proportion to.he interest of each


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Implied trust . .rt 1453 When property isonveyed to a person in

eliance upon his declared,ntention to hold it for orransfer it to another or,he grantor there is anmplied trust in favor ofhe person whose benefit is.ontemplated


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Implied trust . .rt 1454 If an absolute conveyance ofroperty is made in order to secure theerformance of an obligation of the,rantor toward the grantee a trust by.irtue of law is established If theulfillment of the obligation isffered by the grantor when it becomes,ue he may demand the reconveyance of.he property to him


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Implied trust . . ,rt 1455 When any trustee guardian orther person holding a fiduciaryelationship uses trust funds for theurchase of property and causes theonveyance to be made to him or to a,hird person a trust is established byperation of law in favor of the person.o whom the funds belong


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Implied trust . .rt 1456 If property iscquired through mistake

,r fraud the person,btaining it is by force,f law considered arustee of an impliedrust for the benefit ofhe person from whom theroperty comes


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Art. 1456


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Implied trust . .rt 1457 An impliedrust may be proved byral evidence .


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Bank relation to trusts


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What is UITF?1. nit Investment Trust Fund . It is a Trustsroducts of a trust .ompany or council . Governed and Regulated

y Banko Sentral ng PilipinasSP circular 593 .


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Kinds of products eso Funds ollar funds


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Peso funds oney market fund ond fund s fund ixed income fund eso balanced fund quity fund


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navpu eing computed by et Asset Value pernit againstbenchmark


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Trust fund invested to;


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Movement is volatile and

risky


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Investment life cycle


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Relation to art 1440 his falls within theurview of express, ,rust however it isore aggressive than

hat of the art 1440


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UITF vs. Art 1440Investor trustor isk taker ecurity conscousOppurtunist ircumventing ownership o guaranty of returns reater chancef recovery ot subject to prescriprion Subject toprescription


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