Implied trust is founded on equity

Implied trust is founded on equity,[1] thus, reconveyance of the property is an appropriate remedy for the parties. An action for reconveyance based on an implied trust seeks to compel the registered owner to transfer the property to its true owner.[2] In one case, the Supreme Court held that the true owner is the conjugal partnership. Therefore, by virtue of the implied trust created by the parties, the subject property must be transferred back to the conjugal partnership. Upon the death of the husband, his right over his share of the property was automatically transmitted to his heirs.[3]

When property is conveyed to a person in reliance upon his declared intention to hold it for, or transfer it to another or the grantor, there is an implied trust in favor of the person whose benefit is contemplated.[4]

[1] Heirs of Candelaria v. Romero, 109 Phil. 500-504 (1960).

[2] Spouses Aboitiz v. Spouses Po, G.R. Nos. 208450 & 208497, 5 June 2017.


[4] Art. 1453, Civil Code of the Philippines.

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