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Title V.

- TRUSTS (n) onerous condition upon the beneficiary, his name of another, a trust is established by
acceptance shall be presumed, if there is no proof implication of law for the benefit of the true owner.
CHAPTER 1 to the contrary.
GENERAL PROVISIONS Art. 1452. If two or more persons agree to purchase
property and by common consent the legal title is
Art. 1440. A person who establishes a trust is called CHAPTER 3 taken in the name of one of them for the benefit of
the trustor; one in whom confidence is reposed as IMPLIED TRUSTS all, a trust is created by force of law in favor of the
regards property for the benefit of another person others in proportion to the interest of each.
is known as the trustee; and the person for whose Art. 1447. The enumeration of the following cases
of implied trust does not exclude others established Art. 1453. When property is conveyed to a person
benefit the trust has been created is referred to as
by the general law of trust, but the limitation laid in reliance upon his declared intention to hold it for,
the beneficiary.
down in Article 1442 shall be applicable. or transfer it to another or the grantor, there is an
Art. 1441. Trusts are either express or implied. implied trust in favor of the person whose benefit is
Express trusts are created by the intention of the Art. 1448. There is an implied trust when property is contemplated.
trustor or of the parties. Implied trusts come into sold, and the legal estate is granted to one party but
the price is paid by another for the purpose of Art. 1454. If an absolute conveyance of property is
being by operation of law.
having the beneficial interest of the property. The made in order to secure the performance of an
Art. 1442. The principles of the general law of former is the trustee, while the latter is the obligation of the grantor toward the grantee, a trust
trusts, insofar as they are not in conflict with this beneficiary. However, if the person to whom the by virtue of law is established. If the fulfillment of
Code, the Code of Commerce, the Rules of Court title is conveyed is a child, legitimate or illegitimate, the obligation is offered by the grantor when it
and special laws are hereby adopted. of the one paying the price of the sale, no trust is becomes due, he may demand the reconveyance of
implied by law, it being disputably presumed that the property to him.
there is a gift in favor of the child.
CHAPTER 2 Art. 1455. When any trustee, guardian or other
EXPRESS TRUSTS Art. 1449. There is also an implied trust when a person holding a fiduciary relationship uses trust
donation is made to a person but it appears that funds for the purchase of property and causes the
Art. 1443. No express trusts concerning an although the legal estate is transmitted to the conveyance to be made to him or to a third person,
immovable or any interest therein may be proved donee, he nevertheless is either to have no a trust is established by operation of law in favor of
by parol evidence. beneficial interest or only a part thereof. the person to whom the funds belong.

Art. 1444. No particular words are required for the Art. 1450. If the price of a sale of property is loaned Art. 1456. If property is acquired through mistake or
creation of an express trust, it being sufficient that a or paid by one person for the benefit of another and fraud, the person obtaining it is, by force of law,
trust is clearly intended. the conveyance is made to the lender or payor to considered a trustee of an implied trust for the
secure the payment of the debt, a trust arises by benefit of the person from whom the property
Art. 1445. No trust shall fail because the trustee comes.
operation of law in favor of the person to whom the
appointed declines the designation, unless the
money is loaned or for whom its is paid. The latter
contrary should appear in the instrument Art. 1457. An implied trust may be proved by oral
may redeem the property and compel a conveyance
constituting the trust. evidence.
thereof to him.
Art. 1446. Acceptance by the beneficiary is
Art. 1451. When land passes by succession to any
necessary. Nevertheless, if the trust imposes no
person and he causes the legal title to be put in the