Text of the provision
Art. 1455. When any trustee, guardian or other person holding a fiduciary relationship uses trust funds for the purchase of property and causes the conveyance to be made to him or to a third person, a trust is established by operation of law in favor of the person to whom the funds belong.
Civil Code of the Philippines, Republic Act No. 386, approved June 18, 1949, effective August 30, 1950. Reproduced in full; verified verbatim against the LawPhil and ChanRobles official-text renderings.
What this article means
When a trustee, guardian, or other fiduciary uses trust funds to buy property titled in himself or a third person, a trust arises in favor of the owner of the funds.
Related provisions
- Article 1454 — Conveyance as Security (Trust).
- Article 1456 — Constructive Trust From Fraud or Mistake.
Cases citing this article
- Estate of Don Felimon Y. Sotto represented by its administrator, Sixto Sotto Pahang, Jr. vs. Matilde S. Palicte etc., et al, G.R. No. 158642, September 22, 2008 — read the decision on LawPhil →
Compiled automatically from Supreme Court decisions published on LawPhil that expressly cite this article, most frequently cited first. A listing means the decision cites the provision — it is not a statement that the case is the leading authority, and it does not show whether a ruling has since been modified or abandoned. Always read the decision itself.