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Questions and Answers
A trust must always have a lawful purpose; otherwise, it will be void.
A trust must always have a lawful purpose; otherwise, it will be void.
True
The trustee can delegate all duties, including discretionary acts, to other parties.
The trustee can delegate all duties, including discretionary acts, to other parties.
False
A trust relationship is governed by the Civil Code of the Philippines, Title III, Chapter 1, Article 725
A trust relationship is governed by the Civil Code of the Philippines, Title III, Chapter 1, Article 725
True
Trusts are insured by the Philippine Deposit Insurance Corporation (PDIC).
Trusts are insured by the Philippine Deposit Insurance Corporation (PDIC).
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The trustee mus act with the diligence of a prudent person in managing trust assets.
The trustee mus act with the diligence of a prudent person in managing trust assets.
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Donations can only take effect after the donor's death.
Donations can only take effect after the donor's death.
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Trustees must always disclose the details of investments and financial affairs to the trustors
Trustees must always disclose the details of investments and financial affairs to the trustors
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The trustor's death automatically terminates the trust relationship.
The trustor's death automatically terminates the trust relationship.
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A trustor is required to express a clear intention to create a trust for it to be valid.
A trustor is required to express a clear intention to create a trust for it to be valid.
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Estate planning is solely for minimizing taxes and does not involve securing the welfare of beneficiaries.
Estate planning is solely for minimizing taxes and does not involve securing the welfare of beneficiaries.
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Study Notes
Trust Law Fundamentals
- Trusts must have a lawful purpose; otherwise, they are invalid.
- Trustees can delegate duties, including discretionary ones, to others.
- Trust law in the Philippines is governed by Civil Code, Title III, Chapter 1, Article 725.
- Trusts are not insured by PDIC (Philippine Deposit Insurance Corporation).
- Trustees must manage trust assets with prudent care.
- Donations are effective only upon the donor's death.
- Trustees must disclose investment and financial details to the trustor.
- Trust termination occurs automatically upon the trustor's death.
- The trustor must clearly intend to create a trust for its validity.
- Estate planning is not solely about tax minimization; it also involves beneficiary welfare.
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Description
This quiz covers the essential principles of trust law in the Philippines, including the requirements for valid trusts, the role of trustees, and the implications of estate planning. Explore important articles from the Civil Code and understand how trusts operate in terms of asset management and beneficiary welfare.
