Kim Zeus Ga-an

Special Proceedings
Trustees
Rule 98

Trust A legal relationship between one person having an equitable ownership in

property and another person owning the legal title to such property.
Trustee A trustee is one who is appointed to carry out the provision of the will or
any written instrument executed by the trustor.
Express trust one created by the direct and positive acts of the parties, by
some writing or deed, or will, or by the words evidencing an intention to create a
trust

Rule 98 only applies to express trust, one which is created by a will or written
instrument.

When is trustee necessary:

To carry into effect a will where the testator omitted appointing a trustee in
the Philippines.
To carry into effect other written instruments where the trustee declines,
resigns, dies or is removed before the accomplishment or trust.
1. Who appoints the trustee
a. If the will was allowed within the Philippines:
- RTC in which the will was allowed
b. If the Will was allowed outside the Philippines (in other cases):
- RTC in which the property, or some portion thereof, affected by the trust is
situated.
2. Who May File Petition for Appointment of Trustee
- The executor or administrator or the person appointed as trustee under the will or
written instrument
CONDITIONS OF THE BOND
Trustee must file bond before performing duties
(1) Filed with the clerk of court
(2) Amount fixed by the judge
(3) Payable to the government of Philippines
(4) Sufficient and available for the protection of any party in interest
If the trustee fails to furnish a bond as required by the court, he fails to qualify as
such.
REQUISITES FOR THE REMOVAL OR RESIGNATION OF A TRUSTEE
1. Petition filed by parties beneficially interested;
2. Notice to trustee; and
3. Hearing (Sec. 8, Rule 98).
GROUNDS FOR REMOVAL
(1) Removal appears essential in the interest of petitioner;
(2) Trustee is insane;
(3) Otherwise incapable of discharging his trust; or
(4) Evidently unsuitable
He may resign but the court will determine if resignation is proper.

Kim Zeus Ga-an

Special Proceedings

A trustee cannot buy property held in trust by him whether by purchase, even in

public or judicial action, either in person or through mediation of another

because a trustee shall not be allowed to take advantage for himself or trust
property under the pretense of serving the beneficiary.