Goyanko vs. UCPB (g.r no 179096)

FACTS:

          In 1995, the late Joseph Goyanko Sr. invested 2 million pesoseosess with Philippine Asia Lending investors Inc. (PALII). After his death, represented by his son, Goyanko Jr., filed a claim over his estate and at the same time Sr.’s illegitimate family filed a claim as well, over the investment to PALII. Due to the proceedings, PALII, deposited the proceeds with UCPB under the name Phil Asia: ATF (in trust for) the heirs of the late investor. Thereafter, UCPB allowed PALII to withdraw P1.5M under that account. When the heirs were about to claim the proceeds of the investment, UCPB refused to restore the amount to the petitioner. On litigation, the trial court disregarded the statement (ITF) to charge UCPB with any trust relationship with PALII and the decedent’s heirs.

          On appeal, despite the arguments of the petitioners that a trust was created, the appellate court found against the heirs. In their argument, the CA’s iteration was that the transaction was a mere deposit between UCPB and PALII. The ITF addition has no effect.

ISSUE:

          WON a trust agreement occurred?

HELD:

          No. in order for a trust to come into being, Article 1444 of the CC must be satisfied. From the facts at hand, the high court found insufficiency. In fine, the following elements must exist:

1.    a competent trustor and trustee;

2.    an ascertainable trust res; and

3.    sufficiently certain beneficiaries.

The lack of one is fatal to the existence of a trust. Furthermore, there must be a present and complete disposition of the trust property, notwithstanding that the enjoyment in the beneficiary will take place in the future. It is essential, too, that the purpose be an active one to prevent trust from being executed into a legal estate or interest, and one that is not in contravention of some prohibition of statute or rule of public policy. There must also be some power of administration other than a mere duty to perform a contract although the contract is for a third party beneficiary. A declaration of terms is essential, and these must be stated with reasonable certainty in order that the trustee may administer, and that the court, if called upon so to do, may enforce, the trust.