ArticuLaw Primo

Rule 98

TRUSTEES

 

Prepared by: Edward Agravante

 

Jurisdiction

 

    RTC in which the will was allowed, if it be a will allowed in the Philippines, otherwise by the RTC of the province in which the property, or some portion thereof, affected by the trust is situated.

 

 

A trustee is necessary to carry into effect:

 

•A will where the testator omitted to appoint a trustee in the Philippines (Testamentary Trust); and

 

•Other written instruments where the trustee therein declines, resigns, dies, or is removed before accomplishment of trust (Contractual Trust).

 

 

TRUSTEE APPOINTED ABROAD (Sec. 4)

 

    When land in the Philippines is held in trust for a resident by a trustee who derives his authority from abroad, such trustee must petition the RTC where the land is situated, otherwise, the trust will be vacant and a new trustee will be appointed.

 

    When a trust is created abroad for property in the Philippines, judicial approval is still needed though trustor is alive.

 

BOND OF TRUSTEES (Sec. 5)

 

     Neglect of trustees to file a bond will be interpreted by the court as resignation or decline to accept the trust.

 

     However, he may be exempted from bond when requested by:  

 

– Testator;

– All persons beneficially interested in the trust.

 

     However, the court may cancel such exemption anytime.

 

 

REMOVAL OR RESIGNATION OF THE TRUSTEE (Sec. 8)

 

REQUISITES

 

•Petition filed by parties beneficially interested;

•Notice to trustee; and

•Hearing.

 

Question: Who may petition?

 

    Answer: Parties beneficially interested.

 

Grounds:

 

1.essential in the interest of petitioners

2.insanity

3.incapability of discharging trustee

4.unsuitability

 

     Rules on Sale and Encumbrance of Trust Estate shall conform as nearly as may be to the provisions on Sale and Encumbrance by Guardians.

 

 

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See LORENZO vs. POSADAS JR. G.R. No. L-43082 (June 18, 1937)