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.