 confidence reposed in one person, called the trustee,

 for the benefit of another, called the beneficiary

 with respect to property held by the former to the latter.
 The person in whom the confidence is reposed as regards property for the
benefit of another is known as trustee.
 created by the direct and  Without being expressed are
positive acts of the parties, deducible from the nature of
the transaction as matters of
intent
1. Writing  Superinduced on the
2. Deed transaction by operation of
law
3. Will
1. Resulting trust
4. Word
2.Constructive trust
 Arises by operation of law and
presumed to have been
contemplated by the parties
 Intention is found on the
nature of the transaction
 trust not created by any
word or phrase, either
expressly or impliedly,
evincing a direct intention
to create a trust, but one
that arises in order to
satisfy the demands of
justice.
 Accounts are NOT under oath
 MTC or RTC
 May sell, encumber or mortgage
property if it is necessary for the
purpose of paying debts, expenses
of administration or legacies, or for
the preservation of property or if
sale will be beneficial to heirs,
legatees or devisees.
 SETTLE estate of decedent.
 Accounts are NOT under oath
 RTC
 May sell or encumber property of
estate held in trust if necessary or
expedient upon ORDER of the
court.
 CARRY INTO EFFECT the
provisions of a will or written
instrument
 NOT EXEMPTED from filing bond
 terminated UPON PAYMENT OF
DEBTS of the estate and distribution
of property to heirs.
 Must pay debts of the estate
 May be exempt from filing bond
 terminated upon TURNING OVER
THE PROPERTY to beneficiary after
expiration of trust
 No obligation to debt of beneficiary
or trustor
 1) INVENTORY. The trustee shall submit to the court an inventory of the
personal and real estate belonging to him as trustee who shall have come to
his possession or knowledge.
 2) MANAGEMENT AND DISPOSITION. The trustee shall manage and dispose
of such estate and faithfully discharge his trust in relation thereto.
 3) ACCOUNT. The trustee shall render under oath at least once a year until
his trust is fulfilled an account of the property in his hands and of the
management and disposition thereof.
 4) SETTLEMENT OF ACCOUNTS. The trustee shall settle his accounts and
deliver the remaining estate in his hands to those entitled thereto
1. Essential to the interest of the party
 Petition of beneficially interested person
 Notice to trustee
 Hearing

2. Trustee becomes insane, incapacitated, or unsuitable of discharging the trust

 Notice to all parties

3. Trustee assumes to be possessing in his own right and thus renounces the trust
3. Trustee assumes to be possessing in his own right and thus renounces the trust
 Person interested as beneficiaries are entitled to maintain an action to declare their
right and remove unfaithful trustees

4. Resignation
 Whether appointed by the court or under written instrument
 If it appears to the court proper to allow such resignation
 Appointed by RTC – the same rights, powers, and duties as if he had been
appointed by the testator. No person succeeding to a trust as executor or
administrator of a former trustee shall be required to accept such trust

 In case of vacancy where the RTC has appointed a new trustee - have and
exercise the same powers, rights, and duties as if he had been originally
appointed
trust estate shall vest in him in like manner as it had vested or would have
vested, in the trustee in whose place he is substituted