TRUSTS & POWERS OF ATTORNEY

TRUSTS & POWERS OF ATTORNEY

TRUST – obligation of a person to whom legal title to property is transferred to hold the property according to confidence reposed in him

2 KINDS:
1. Expressed – need to be in writing; cannot be proved by parole evidence

2. Implied – exist by operation of law; can be proved by parole evidence
Types:
a. Property is bought but paid by another party

b. Donation is made but donee have no beneficial interest thereon

c. Price of sale of property is loaned & conveyance is made to lender to secure fulfillment of loan
d. Land passes by succession to a person but legal title is put in another’s name

e. 2 persons purchase property but placed only in one’s name

f. Guardian uses funds of ward to buy property

g. Property is acquired thru mistake or fraud

POWER OF ATTORNEY – authority granted to a person to dispose one’s property

TRUST DIFFERENTIATED FROM POWER OF ATTORNEY
1. Trust has 3 parties while power of attorney has 2 parties

2. Trust is for benefit of 3rd party while power of attorney is for benefit of principal

REGISTRATION OF TRUST
1. Sworn statement claiming interest by reason of an implied trust with description of land & reference to number of certificate shall be registered in ROD

2. Provided not prohibited to do so by instrument creating the trust

APPOINTMENT OF TRUSTEE BY COURT
• Certified copy of decree shall be presented to ROD & surrender duplicate certificate

• Cancel duplicate & new certificate shall be entered by ROD

ACTION FOR RECONVEYANCE BASED ON IMPLIED TRUST
• Prescribes in 10 years

• If acknowledged in written form – becomes express trust – prescribes upon repudiation