PALLASIGUE, Mary Jobeth E.

3A-JD4
Simulate and Execute (Batch 3)

DECLARATION OF TRUST

This DECLARATION OF TRUST made and signed this 1st day of December, 2018, in
the City of Manila, Philippines, by and between Donato Antonio L. Pangilinan, hereafter
called the TRUSTOR, of legal age, married, and residing at 54-A Mekeri Avenue,
Quezon City, and Manulife Asset Management and Trust Corporation, to be represented
by its Head of Equities Mark Alan H. Canizares, hereafter called the TRUSTEE, a
domestic corporation duly organized to act as trustee and BSP Supervised Financial
Institutions with Trust Authority.
WITNESSETH:
FIRST, The TRUSTOR hereby assigns transfers and sets over unto the
TRUSTEE, its lawful successors and assigns, all the following described securities, life
insurance policies, and other property, real and personal, all of which are hereby
designated as “Donato and Kirsten Laxa-Panglinan Trust Fund”:

1. A parcel of land which was my residence at the time of my

death, situated in Quezon City, Philippines, bounded and
described as Lot 14, Block 74, PSD-1650, LRC REC. No.
135 with the area of 3,500 square meters with a Transfer
Certificate Title No. 004-2015015726;

2. Three (3) adjacent parcels of land covered by Transfer

Certificate of Title (TCT) Nos. 15515, 15516, and 15684,
with the area of 1,000 square meters, 226 square meters
and 1,000 square meters, respectively. All three parcels of
land are situated along Ligaya Drive, Barangay Francisco,
Tagaytay City;

3. A parcel of land situated in Barangay Bangad, Binangonan,

Province of Rizal, having an area of 1,728 square meters
and covered by Tax Declaration No. 26-0027;
 4. 2016 Montero Sports car with Official Receipt/Certificate
of Registration No. (OR/CR No.) 800192013 issued
09/20/2016, and registered with the Plate no. PQE-899;

5. 2018 Toyota Fortuner G Manual Transmission with

Official Receipt/Certificate of Registration No. (OR/CR
No.) 9667647987 issued 02/12/2018, with the Plate no.
AAB-463;

6. The amount of EIGHTEEN MILLION FIVE HUNDRED

THOUSAND PESOS (P18,500,000) to be drawn against
my savings under bank account no. 468 8953 2553 267 at
Banco De Oro branch of Makati City;
TO HAVE AND TO HOLD, unto the TRUSTEE, its lawful successors and assigns, in
trust, and for the use and benefit of the following BENEFICIARIES:

1. Danita Kristine D. Pangilinan

2. Diego Kalvin D. Pangilinan
3. Dayanara Kate D. Pangilinan
4. Desmond Karl D. Pangilinan
5. Desirei Kiel D. Pangilinan

SECOND. The TRUSTEE shall have the following duties and powers:

1. To collect and apply the income from said fund for the benefit of the above-
named beneficiaries;

2. To hold said insurance policies without any obligation of any nature in respect
thereto other than the safekeeping thereof during the life of the TRUSTOR
and upon receipt of the proof of his death, or that any of said policies shall
have matured, to use its best efforts to collect and receive any and all sums of
money payable thereunder and when so collected and received to hold and
invest said sums of money as a trust fund or add the same to any trust fund
already existing hereunder, for the benefit of the aforesaid beneficiaries;
 3. To apply the income from said trust fund quarterly or oftener as in its absolute
and uncontrolled discretion may deem advisable, for the proper care, support
and education of the beneficiaries in equal portions;

4. To receive any other property, real or personal, devised, bequeathed, assigned,

granted or conveyed to it by the TRUSTOR, or by any other person, for the
purposes of the Trust hereby created, and all such property shall be held by
the TRUSTEE subject to the terms of this Trust, as if it or they had been
included in the description of the property hereby transferred to the
TRUSTEE. Any sum of money or other property so received shall
immediately constitute a trust fund, or be added thereto, to be held, invested
and managed, and payments therefrom made, in accordance with the purposes
of this Trust.

5. To have full power and authority, in its absolute and uncontrolled discretion,
to improve, sell, lease, mortgage or exchange, the whole or any part of such
property, whether real or personal, upon such terms and conditions as may to
it seem and advisable, and to invest and reinvest any of the trust funds held
hereunder, in such amounts as it may see fit, in such property, real or personal,
as it may, in its absolute and uncontrolled discretion, deem advisable;

THIRD. This Trusteeship is irrevocable by the Trustor: Provided, however, that

after his death, this TRUSTEESHIP may be terminated by the unanimous consent of the
BENEFICIARIES, if all are of legal age, in which case the legal and absolute ownership
of the properties in trust shall vest in the said BENEFICIARIES in equal portions:

FOURTH. The TRUSTEE, hereby accepts the said Trust and agrees to carry out
the provisions and terms thereof.

IN WITNESS WHEREOF, the TRUSTOR has hereunto set his hand, and the
TRUSTEE has caused these presents to be executed by its duly authorized officer and its
corporate seal to be hereunto affixed, as of the day and year first above written.

___________________________ _________________________
Trustor Head of Equities
 NAMES OF WITNESSES ADDRESS

1. Maricar Grace M. Velasco Block 91A, Matalino St, Quezon City

2. Theresa Andrea R. Lacson Lot 72, Mckinley Lane, Quezon City

3. Coleen Joyce Q. Bautista 12 Animo, Brgy. Unlad, Quezon City

ACKNOWLEDGMENT

BEFORE ME, Notary Public for and in Quezon City on 29th of September, 2018 personally
appeared:
Name ID No. Date of Issuance
1. Donato L. Pangilinan Driver’s License No. G06-07-903901 08-19-2017
2. Mark Alan H. Canizares Driver’s License No. G06-097-959843 07-24-2017
3. Therese Andrea R. Lacson SSS ID No. 02-5742683-01 05-13-2017
4. Coleen Joyce Q. Baustista Philhealth ID No. 4637-1246-7842 09-21-2017
5. Maricar Grace M. Velasco TIN ID No. 342-547-431-000 12-16-2016

all known to me to be the same persons who executed the foregoing Declaration of Trust Fund,
the first as the trustor, the second as the trustee, and the last three as instrumental witnesses, and
they respectively acknowledged to me that the same as their own free act and deed. This Last
Will and Testament consists of four (4) pages, including the page on which this
acknowledgment is written, and has been signed on the left margin of each and every page
thereof by the testator and his witnesses, and sealed with my notarial seal.

IN WITNESS WHEREOF, I have hereunto set my hand the day, year, and place above written.

Notary Public
Doc. No. 27;
Page No. 27;
Book No. XI;
Series of 2018.

ATTY. MARY JOBETH E. PALLASIGUE

Notary Public
Until November 20, 2020
Serial No. of Commission: NP-022 (2018-19)
Place of Commission: Metro Manila
Office Address No. Unit 7M, Scout Boryu Panay Ave.
Roll of Attorney’s No. 85753
IBP Lifetime No. 175835; 01-21-2018
MCLE No. 2474957; 01-13-2017
How is a Living Trust an alternative to will-making?

A living trust can be an effective alternative to a will. Like a will, a living trust may also serve
as an instrument to direct the distribution of the property of upon the death of the grantor.
Corollary to this, like a will, a living trust may be altered, or revoked, at any time prior to the
death of the grantor. Unlike a will, however, a living trust provides for the management of the
properties, either by the grantor himself or by anyone else, at the election of the grantor, during
the lifetime of the latter. Despite the creation of a living trust, the trustor retain complete control
the subjected properties because he can revoke or change the trust at any time. The execution of
a Living Trust results one to be financially responsible and responsive. The institutional trustee
such as the one provided in the sample form is financially responsible not only by its own
capital and surplus but also by the reserves it is required to put up for its trust business. Unlike a
natural person as trustee, an institutional trustee is more compelled to maintain its financial
responsiveness otherwise it may forfeit the patronage of people seeking trust service. The
institutional trustee is under constant and continuous government regulations, examination and
supervision by various government entities, specifically the Bangko Sentral ng Pilipinas, to
ensure that the institutional trustee manages the trust property in the best interest of the
beneficiary thereof.

In conclusion, I would like to state that contrary to the stereotyped thinking of most people that
trusts are only for the wealthy, a living trust is an effective alternative of will-making. Anyone,
regardless of social and economic status, can utilize a trust in their estate plan as an instrument
to distribute assets effectively and efficiently upon death or to put stipulations on gifted assets.

When should this be executed?

Any individual competent and capacitated to enter into a contract can create a living trust during
his lifetime by signing a legal instrument that directs how property transferred to the trust will
be managed, when and to whom the income from the trust property will be paid, and to whom,
when and how the trust property will be distributed upon his death.
 CONTRACT OF USUFRUCT

This USUFRUCT AGREEMENT made and signed this 1st day of December, 2018, in
the City of Manila, Philippines, by and between:

Donato Antonio L. Pangilinan, hereafter called the LANDOWNER, of legal age,

married, and residing at 54-A Mekeri Avenue, Quezon City;
and
Kirsten Kate A. Delavin, hereafter called the USUFRUCTUARY, of legal age, married,
and residing at Lot 72, Mckinley Lane, Quezon City

- WITNESSETH -

WHEREAS, the LANDOWNER owns a parcels of land more particularly described as:

Three (3) adjacent parcels of land covered by Transfer

Certificate of Title (TCT) Nos. 15515, 15516, and 15684,
with the area of 1,000 square meters, 226 square meters
and 1,000 square meters, respectively.

Copy of which is hereby attached as ANNEX “A” and made as integral part of this
Agreement;

WHEREAS, the USUFRUCTUARY is a private individual, upon an agreement with

the landowner, is currently occupying all of the three parcels of land that are situated
along Ligaya Drive, Barangay Francisco, Tagaytay City;

WHEREAS, the LANDOWNER, by tolerance, is hereby bestowing the right to use and
enjoy the property provided that all the necessary improvements for preservation of the
said property, including the payment of electricity and water shall be shouldered by the
usufructuary;

WHEREAS, the USUFRUCTUARY, shall bear the burden of preserving the property,
ensuring its usefulness for the future use of the landowner, maintaining peaceful
existence within the property and paying all necessary expenses for the preservation and
improvements of the said property;

WHEREAS, the LANDOWNER is willing to enter into a usufruct agreement with the
USUFRUCTUARY subject to the terms and conditions herein;
NOW THEREFORE, for and in consideration of the foregoing premises and of the
mutual covenants hereinafter contained, the parties hereby agree as follows:

1. TERM. The term of the usufruct shall be for a period of seventeen (17) years but
subject of extension upon agreement of two parties from the signing of this Agreement
unless the PARTIES pre -terminate the same on the following grounds:

1.1. The USUFRUCTUARY buys the land from the LANDOWNER;

1.2. The USUFRUCTUARY violates any of the conditions stated herein, and

1.3. The USUFRUCTUARY is in bad faith and committed acts or omission that
will prejudice the landowner.

2. PURPOSE OF THE USUFRUCT- The place will serve as home and residence of
the usufructuary.

3. LAND OWNERSHIP- The ownership and title remains with and continues to be in
the name of the LANDOWNER. Upon expiration or pre -termination of the Agreement
on the grounds stated under sub - sections 1.1-1.3 of the Agreement, all permanent
improvements existing shall inure to the benefit of the LANDOWNER. It is hereby
understood that permanent improvements shall refer to those that cannot be detached or
removed without damaging the structure.

4. RIGHTS AND OBLIGATIONS OF THE USUFRUCTUARY

4.1. The USUFRUCTUARY shall voluntarily surrender possession and return or

vacate the property to the LAND OWNER without need of demand upon
expiration of the Agreement in case the former does not purchase the property
from the LAND OWNER;

4.3. The USUFRUCTUARY shall pay the real estate taxes due on the property
upon construction of their housing units/ buildings as well as the taxes due on
housing units/ building constructed;

4.4. The USUFRUCTUARY shall not sell, dispose, mortgage, encumber,

transfer, assign, tolerate the use by a third party, or use as collateral unless with
the consent of the LANDOWNER;

4.5. The USUFRUCTUARY shall not enter into any other agreements that will
involve use of the property intended without the consent of the Landowner.
 4.6. The USUFRUCTUARY shall not alienate or transfer its USUFRUCTUARY
rights, or do anything thereon which may be prejudicial to the rights of the
LANDOWNER;

4.7. The USUFRUCTUARY shall be obliged to notify the LANDOWNER of

any act of a third person, of which it may have knowledge, that may be
prejudicial to the rights of ownership, and it shall be liable if it did not do so, for
damages, as if they had been caused through its own fault;

4.8. The USUFRUCTUARY may provide, introduce and/ or maintain proper

infrastructures, perimeter fences, facilities that shall make property sustainable
and viable for use;

4.9. The USUFRUCTUARY shall be responsible for maintaining the cleanliness

and peace and order in the area;

4.10. The USUFRUCTUARY shall not use the property for any unlawful or
illegal act.

5. RIGHTS AND OBLIGATIONS OF THE LAND OWNER

5.1. Authorize the USUFRUCTUARY to apply, sign, obtain, secure, and submit
documents for securing the necessary permits, including but not limited to
building and development permits;

5.2. Exercise the right of ownership over the property under usufruct;

5.3. Remove hazardous or harmful structures at the expense of the

USUFRUCTUARY.

6. OTHER TERMS AND CONDITIONS

6.1 This Agreement shall be binding upon the parties hereto and their successors-
in-interest.

6.3. In case of breach of any terms of the Agreement, dispute and/ or litigation
arising from this agreement, the venue of actions shall be filed in the proper
courts of Iloilo City, to the exclusion of all other courts.
 IN WITNESS WHEREOF, the parties have hereunto affixed their signatures, this 1st
day of December, 2018 at Quezon City, Philippines.

________________________ ___________________________
LANDOWNER USUFRUCTUARY

SIGNED IN THE PRESENCE OF:

Maricar Grace M. Velasco Block 91A, Matalino St, Quezon City

Theresa Andrea R. Lacson Lot 72, Mckinley Lane, Quezon City

Coleen Joyce Q. Bautista 12 Animo, Brgy. Unlad, Quezon City

JOINT ACKNOWLEDGMENT

REPUBLIC OF THE PHILIPPINES)

QUEZON CITY ) SS.

BEFORE ME, a Notary Public, this 1st day of December, 2018, personally appeared the
following:

DONATO ANTONIO L. PANGILINAN SSS ID No. 02-5742683-01 05-13-2017

KIRSTEN KATE A. DELAVIN Philhealth ID No. 4637-7842 09-21-2017

This instrument, consisting of four (4) pages, including the page on which this
acknowledgment is written, has been signed on the left margin of each and every page thereof
by the concerned parties and their witnesses, and sealed with my notarial seal.

IN WITNESS WHEREOF, I have hereunto set my hand the day, year and place above
written.

Doc. No. 27;

Page No. 27;
Book No. XXV;
Series of 2018.

ATTY. MARY JOBETH E. PALLASIGUE

Notary Public
Until November 20, 2020
Serial No. of Commission: NP-022 (2018-19)
Place of Commission: Quezon City
Office Address No. Unit 7M, Scout Boryu Panay Ave.
Roll of Attorney’s No. 85753
IBP Lifetime No. 175835; 01-21-2018
MCLE No. 2474957; 01-13-2017
How is a Contract of Usufruct an alternative to will-making?

Art. 562. Usufruct gives a right to enjoy the property of another with the
obligation of preserving its form and substance, unless the title
constituting it or the law otherwise provides.

The execution of a Contract of Usufruct can be a more feasible way of transferring

properties, thus, a more practical alternative to will-making. A usufruct is the right to use
and enjoy another person's property and to take all its fruits or produce. It shall serve as
an expeditious way to transfer the enjoyment of the property to the heirs rather that to
bear the rigorous process of probate and wait for its finality. Usufruct may also
counteract the prodigality or weakness of character of such beneficiary or usufructuary.
In law a usufruct is a limited real right. While the beneficiary enjoys the benefits, he
may not sell the property and the right of enjoyment is for a limited period or, at most,
for his lifetime. For estate planning purposes there are several applications for usufructs
depending on the objectives of the planner.

When should this be executed?

Art. 563. Usufruct is constituted by law, by the will of private persons

expressed in acts inter vivos or in a last will and testament, and by
prescription.

The provision of the New Civil Code, by implication, states that a Contract of Usufruct
by the owner for the benefit of the usufructuary shall be executed during the former’s
lifetime or acts inter vivos. The law further provides that a usufruct may be constituted
on the whole or a part of the fruits of the thing, in favor of one more persons,
simultaneously or successively, and in every case from or to a certain day, purely or
conditionally. It may also be constituted on a right, provided it is not strictly personal or
intransmissible.

References:
De Leon, H., & De Leon, J. H. (2011). Comments and Cases on Property. Quezon City: Rex
Printing Company, Inc.
Tolentino, A. (1999). Civil Code of the Philippines, Vol. II. Quezon City: Central Professional
Books, Inc.
The New Civil Code of the Philippines