Trust

Are you aware of Trust Law?

By definition, Trust is assured reliance on the character, ability, strength, or truth of someone or something.

(Merriam Webster)

However, Trust is the legal relationship between one person having an equitable ownership of property and another person owning the legal title to such property, with the equitable ownership of the former entitling him to the performance of certain duties and the exercise of certain powers by the latter. (lawphil.net)

Here are some of the common benefits of Trust:

• Bypass Probate: Assets that are willed to beneficiaries generally pass through probate, which is a legal process that can be time-consuming and expensive. Avoiding probate can help save time and money for your beneficiaries, and it can help protect your family's privacy.

• Privacy: Trusts can help protect your privacy because they do not necessarily become public record.

• Tax Advantages: Certain types of trusts allow for the transfer of assets out of the estate, which can effectively reduce estate taxes and gift taxes.

• Protecting Assets From Creditors: Similar to the tax advantage benefit, due to the change in ownership, transferring assets out of the estate can limit creditors' access to them and shelter them from judgments against you.

• Control of Assets: By specifying the terms of your trust, you can decide who receives your assets and when they will receive them after you die.

• Children as Beneficiaries: A trust can be used to name your children as beneficiaries of your life insurance policy.(westernsouthern.com)

Trust legal parameters in the Philippines: The Civil Code of the Philippines Title V. - TRUSTS (n)

• 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.

• Art. 1441. 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. 1443. No express trusts concerning an immovable or any interest therein may be proved by parol evidence.

• 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. 1445. No trust shall fail because the trustee appointed declines the designation, unless the contrary should appear in the instrument constituting the trust.

• Art. 1446. Acceptance by the beneficiary is necessary. Nevertheless, if the trust imposes no onerous condition upon the beneficiary, his acceptance shall be presumed, 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 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.

• 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.

• 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.

• 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. 1452. If two or more persons agree to purchase property and by