Does the beneficiary of a trust have to accept it, or is acceptance presumed?

Acceptance is required — but the law helps

Article 1446 gives a two-part answer. As a starting principle, acceptance by the beneficiary is necessary. A trust is created for someone's benefit, and the law does not force a benefit on a person against his will, so the beneficiary's acceptance is part of the picture. But the article immediately softens the burden. Where the trust imposes no onerous condition upon the beneficiary, his acceptance shall be presumed, unless there is proof to the contrary. In the ordinary case of a pure benefit, the beneficiary need not perform any formal act; the law assumes he accepts.

Why a pure benefit is presumed accepted

The presumption rests on common sense. If someone is simply given an advantage, with nothing demanded in return, people almost always want it. It would be pointless — and sometimes impossible — to require every such beneficiary to come forward and formally say yes, especially where the beneficiary is a child, is far away, or does not yet know of the trust. So the law presumes acceptance for a benefit that carries no strings. This keeps trusts workable and protects beneficiaries who would obviously accept but have not gone through any ceremony of acceptance.

When acceptance cannot simply be assumed

The presumption has a clear boundary: it applies only where the trust imposes no onerous condition on the beneficiary. If the benefit comes tied to a real burden — an obligation to do, pay, or give something — the law will not presume the beneficiary embraced that burden. There the beneficiary's genuine acceptance matters, because he is being asked to take on a duty, not just receive a gift. And even for a pure benefit, the presumption yields to proof to the contrary: evidence that the beneficiary actually declined defeats the assumption that he accepted.

What this means in practice

For a beneficiary of a straightforward, unconditional trust, there is usually nothing to do — acceptance is presumed and the benefit is his unless he clearly refuses. For a beneficiary offered a benefit weighed down by conditions, it is wise to understand the burden before treating the trust as accepted, since acceptance there is not automatic. And anyone who does not want a trust's benefit can rebut the presumption by making a refusal plain. The safest course, where conditions or large sums are involved, is to document the acceptance or refusal clearly.

Cases citing this provision

These Supreme Court decisions cite the provision above. We list them so you can read them yourself; the summaries of what each decided are not ours to give.

• Efraim D. Daniel vs. Nancy O. Magkaisa, et al, G.R. No. 203815, December 7, 2020 — read the decision on LawPhil →
• Eulogio M. Pedrano vs. Heirs of Benedicto Pedrano etc, G.R. No. 159666, December 4, 2007 — read the decision on LawPhil →

Related provisions

• Civil Code, Article 1446 — Beneficiary's Acceptance