5. Resulting Trusts Flashcards
What are resulting trusts?
Trusts that arise when an express trust fails.
What are the two types of resulting trusts?
Automatic and presumed.
What is an automatic resulting trust?
When property is transferred to a trustee and the express trust fails, the trustee holds legal title for the settlor on an automatic resulting trust.
What are the reasons for trusts to fail?
Uncertainty, expiration, inability to fulfill purpose, etc.
What is a presumed resulting trust?
When a person contributes all or part of the purchase price for an asset, courts presume that the person making the transfer intended to create a trust based on their actual intention.
What is the presumption of resulting trust for voluntary transfer of personalty?
There is no evidence of intention.
Is there an automatic presumption of resulting trust for voluntary transfers of land?
No, additional evidence is required.
What is the presumption of resulting trust for purchase money?
If a buyer purchases property and puts it in another person’s name, there is a presumed resulting trust for the buyer.
How is the presumption of resulting trust for contribution to price determined?
It is based on the size of the parties’ interest compared to the size of their respective contributions.
What is the presumption of advancements?
The transferor is presumed to be gifting property to the transferee, so there is no resulting trust.
Who does the presumption of advancements apply to?
Father to child and husband to wife (engaged couples suffice as long as they marry after).
What happens if the roles are reversed in the presumption of advancements?
The presumption of resulting trust will apply, unless rebutted by evidence.
How can the presumptions be rebutted?
By providing evidence of other intentions before or at the time of transfer.
What are examples of situations where there is no resulting trust?
Self-declarations of trust and failed constitution.
