Supreme Court Judgment of 18 December 2025
A relatively common practice in certain family structures involves acquiring property in the name of third parties—spouse, family company, or children—when the funds actually come from someone else.
The Supreme Court has now reaffirmed a clear limit: beneficial ownership prevails over formal ownership, and a person acquiring property with another’s funds cannot rely on appearances to claim ownership against the true owner or their heirs.
The case at hand
An extramarital son, judicially recognised as heir, brought proceedings against the widow, marital children and two family companies, claiming that several properties registered in their names had actually been acquired with the deceased’s funds.
Both the Provincial Court and the Supreme Court upheld the claim and ordered the restitution of the properties to the estate.
What is fiducia cum amico and why it matters
This legal figure arises where one person (the settlor) entrusts another (the trustee) to appear as the formal owner of an asset that actually belongs to the former.
The Supreme Court broadens its application: even where the trustee acquires directly from a third party using the settlor’s funds, the obligation to return the asset still exists.
Illegality does not protect the trustee
The defendants argued that if the arrangement aimed to conceal assets, it was unlawful and therefore could not be undone.
The Court firmly rejects this: illegality cannot be used to unjustly retain property. A nominal holder cannot rely on the unlawful purpose to claim ownership.
Proof of the origin of funds
The decisive factor is evidence of where the money came from. The Court considered:
- Prior judgments
- Historical acquisition patterns
- Cash payments
- Lack of financial capacity of the formal owners
Where the registered owner cannot justify financial capacity, the presumption of third-party ownership strengthens significantly.
Practical implications
- Family companies are not automatic shields
- Poorly documented estate planning creates long-term risk
- Financial traceability is essential
- Informal agreements are ineffective against heirs
- Fraudulent intent backfires
Conclusion
Formal ownership alone does not create real ownership. Structures based on appearances can be dismantled if it is proven that assets were acquired with another’s funds.