TRUSTS AND POWERS OF ATTORNEYTrust, defined. Is confidence reposed in one person, called trustee, for the benefit of another, who is called cestui que trust, the source of trust being called the trustor. An obligation of a person to whom the legal title to property has been transferred arising out of a confidence reposed in him to apply the property faithfully and according to such confidence. Not the same as trust as used in the United States which means monopolistic combination. The Philippine Civil Code recognize two kinds of trusts: Express trust created by the intention of the trustor or the parties, and is required to be evidenced by writing, parol evidence not being sufficient in cases of real estate or an interest therein. Implied trust exists by operation of law

Lorenzo vs. Posadas, 64 Phil 353It was held that no particular form of words or conduct is necessary for the manifestation of intention to create a trust. It is possible to create a trust without using the word trust or trustee.Magtulis, et. al. vs. Espartero, 63 O.G. 24In one case, a grantor conveys land to the grantee with the understanding that after the latters death the property would be returned to the grantor or his heirs, an implied trust is created in favor of the grantor or his heirs.

Characteristics of trust.a) It is a relationship; b) it is a relationship fiduciary in character; c) it is a relationship with respect to property, not one involving merely personal duties; d) it involves the existence of equitable duties imposed upon the holder of the title to the property, to deal with it for the benefit of another; and e) it arises as a result of a manifestation of intention to create relationship.

Power of Attorney, defined. An authority enabling a person to dispose of the interest which is vested in another. An authority to do some act in relation to lands, or the creation of estates therein, or of charges thereon, which the owner, granting or reserving such power, might himself lawfully perform.

Power of Attorney distinguished from Trust.POWER OF ATTORNEYTRUST

- only two persons are necessary, the principal and the attorney in fact- there are generally three persons involved, the trustor; the trustee and the cestui que trust or beneficiary

- never imperative but always discretionary- always imperative and leaves nothing to the option of the trustee

- the attorney-in-fact acts for the use and benefit of the principal who appointed him- trustee acts not necessarily for the benefit of the trustor who appointed him, but upon his discretion, for the ultimate benefit of a third party the cestui que trust

Implied trust. The enforcement of an implied or constructive trust is to provide an equitable remedy against unjust enrichment of a person at the expense of another. Fraudulent registration of land holds the person in whose name the land is registered as a mere trustee.

Pacheco v. Arro, 85 Phil 505Where the land is decreed in the name of a person through fraud or mistake, such person is by operation of law considered a trustee of an implied trust for the benefit of the Torrens title and the trustee and his successors-in-interest are bound to execute the deed of reconveyance.

NOTE: A holder in bad faith of a Torrens title is not entitled to protection.

Existence of cestui que trust not indispensable. In private trusts, it is not necessary that the cestui que trust should be named or even in esse at the time the trust is created in his favor. In charitable trust the rule is still further relaxed.

Trust created to go around the law, void.A trust will not be created when, for the purpose of evading the law prohibiting one from taking or holding real property, he takes a conveyance thereof in the name of a third person.

Francisco v. Rodriguez, G.R. No. L-31083By transgressing the law and allowing one to be a dummy in the acquisition of land, he has eliminated the very source of his claim in the land and, consequently, he cannot lawfully assert any right or interest therein.