Proceedings when trustee under will is necessary.
SEC. 582. Proceedings when trustee under will is necessary. — If a testator has omitted in his will to appoint a trustee in the Philippine Islands, and if such appointment is necessary to carry into effect the provisions of a will, the Court of First Instance of the province wherein the property that would be affected by the trust, or some portion thereof, is situated, may, after notice to all persons interested, appoint a trustee, who shall have the same rights, powers, and duties and in whom the estate shall vest, in the same manner as if he had originally been appointed by the testator.
When trustee declines, resigns, dies, or is removed.
SEC. 583. When trustee declines, resigns, dies, or is removed. — When a trustee, under a written instrument declines, resigns, dies, or is removed before the objects of the trust are accomplished, and when no adequate provision is made in such instrument for supplying the vacancy, the Court of First Instance wherein the will was established, if such instrument was a will, or, if it was an instrument other than a will, the court of the province wherein the property, or some portion thereof, affected by the trust is situated, shall, after due notice to all persons interested, appoint a new trustee to act alone or jointly with the others, as the case may be.
Powers and bond of new trustee.
SEC. 584. Powers and bond of new trustee. — A new trustee appointed under the preceding section or appointed in place of a former trustee, in conformity with a written instrument creating a trust, shall, upon giving such bond as may be required, which bond shall be of sufficient size to fully protect the trust estate, and shall be determined, and the sureties thereof be approved, by the judge, have and exercise the same powers, rights, and duties, whether as a sole or joint trustee, as if he had been originally appointed, and the trust estate shall vest in him in like manner as it had vested, or would have vested, in the trustee in whose place he is substituted; and the court may order any conveyances to be made by the former trustee or his representatives, or by the other remaining trustees, which it may deem proper and convenient, to vest the trust estate in the new trustee, either alone or jointly with the others.
Trustee appointed abroad must have new appointment here.
SEC. 585. Trustee appointed abroad must have new appointment here. — When lands in the Philippine Islands are held in trust for persons resident here, by a trustee who derives his appointment or authority from a court having no jurisdiction within these Islands, such trustee shall, on petition made to the Court of First Instance in the province in which the lands lie, and after due notice to all persons interested, be required to take out letters of trust from said court; and upon his neglect or refusal to comply with such order, the court shall declare such trust vacant, and shall appoint a new trustee in whom the trust estate shall vest in like manner as if he had been originally appointed, or authorized by said court.
Notice to trustee.
SEC. 586. Notice to trustee. — The notice to the trustee required by the preceding section, may be given by serving on him a copy of the petition, and of the citation of the court issued thereon, fourteen days at least before the time fixed for the return of such citation, or by such other notice as the court may order.
Removal of trustees.
SEC. 587. Removal of trustees. — Courts of First Instance in the several provinces may, upon application of the parties beneficially interested in the trust, remove a trustee under a written instrument, if such removal appears essential in the interests of the applicants. The trustee shall have notice of the application and opportunity to be heard, and to show cause why the removal should not be made. The court may also, after notice to the trustees and to all other persons interested, remove any such trustee who has become insane or otherwise incapable of discharging his trust or evidently unsuitable therefor.
Resignation of trustees.
SEC. 588. Resignation of trustees. — Every trustee under a written instrument, and every trustee appointed by the court, may, upon his own request, resign his trust if it appears to the court proper to allow such resignation.
Executor, and so forth, of former trustee not bound to accept trust.
SEC. 589. Executor, and so forth, of former trustee not bound to accept trust. — No person succeeding to a trust as executor or administrator of a former trustee shall be required to accept such trust.
Bonds of trustees.
SEC. 590. Bonds of trustees. — Every trustee under a will, and every trustee appointed by the court, before entering on the duties of his trust, shall, unless it is otherwise specially provided by law, give bond with sufficient surety or sureties, to be approved by the judge, in such sum as the judge or court having jurisdiction of the trust may order, payable to the Government of the Philippine Islands, and available for the protection of any interest. The bond shall be lodged with the clerk of the Court of First Instance and be by him recorded in the books of the office; and the following conditions shall be deemed to be a part of the bond, whether written therein or not:
1. To make and return to the court, at such time as it may order, a true inventory of all the real and personal estate belonging to him as trustee, which at the time of the making of such inventory shall have come to his possession or knowledge;
2. To manage and dispose of all such estate, and faithfully to discharge his trust in relation thereto according to the law and will of the testator, or the provisions of the instrument under which he is appointed;
3. To render upon oath at least once a year until his trust is fulfilled, unless he is excused therefrom in any year by the court, a true account of the property in his hands, and of the management and disposition thereof, and also to render such account at such other times as said court may order;
4. At the expiration of his trust to settle his account in court and to pay over and deliver all the estate remaining in his hands, or due from him on such settlement, to the person or persons entitled thereto. But when the trustee is appointed as a successor to a prior trustee, the court may dispense with the making and return of an inventory, if it appears to be unnecessary, and in such case the condition of the bond shall be altered accordingly.
Appraisal.
SEC. 591. Appraisal. — When an inventory is required to be returned by a trustee, the estate and effects shall be appraised by two suitable persons who shall be appointed by the court, and sworn to make a just appraisal of the estate and effects belonging to the trust.
When bond may be dispensed with.
SEC. 592. When bond may be dispensed with. — A trustee under a will, except as hereinafter provided, shall be exempt from giving a surety or sureties on his bond, when the testator has ordered or requested such exemption, and any trustee shall, except as hereinafter provided, be so exempt when all persons beneficially interested in the trust, being of full age, request such exemption; but the trustee shall, in all cases, give his own personal bond: Provided, nevertheless, That any trustee either under a will or appointed by the court or judge, who has not given a bond with surety or sureties may be required by the court or judge at any time, when it deems it proper, to give such bond.
Neglect to give bond.
SEC. 593. Neglect to give bond. — Any trustee who neglects to give bond in accordance with the preceding sections shall be considered to have declined or resigned the trust.
Sale of trust estate.
SEC. 594. Sale of trust estate. — When the sale and conveyance or transfer of any real or personal estate held in trust appears to be necessary or expedient, the court having jurisdiction of the trust may, after notice and other proceedings, when required, order such sale and conveyance, and transfer, to be made, and the reinvestment and application of the proceeds of such sale in such manner as will best effect the objects of the trust. The application to the court, notice, hearing, order of sale, and record of proceedings, shall all be in the manner hereinbefore provided with reference to the sale by guardians of the property of minors or other wards.
General jurisdiction over trust.
SEC. 595. General jurisdiction over trust. — Courts of First Instance in several provinces may hear and determine all matters in relation to trusts created by will, not particularly mentioned in this chapter, and shall have jurisdiction over all matters relating to the termination of trusts created by will, deed, or other instrument of like nature. When the Court of First Instance of any province has lawfully taken jurisdiction of any trust estate, its jurisdiction shall be exclusive, and shall exclude the Court of First Instance of any other province from taking jurisdiction of any matters subsequently arising in relation to the same trust.
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
