Chapter 5- Resulting Trusts Flashcards
How are implied trusts created?
Created (or implied) through operation of law.
What is the presumption of a resulting trust— Voluntary transfer of personalty?
Voluntary transfer of personalty.
Personalty is any kind of property other than land.
If A transfers personalty they already own to B for free, a presumption of resulting trust will generally arise.
Under a resulting trust, B holds the legal title and A gets the equitable interest in the property.
How can the presumption of a resulting trust be rebutted?
It can be rebutted by evidence of the person’s actual intention.
What is the presumption of a resulting trust— Voluntary transfer of land?
The presumption of resulting trust is less likely to apply if the property being transferred is land.
it is possible for a resulting trust to arise out of a voluntary transfer of land, but the court would need some evidence or additional factor. It cannot simply be presumed,ed in the absence of evidence.
What is the presumption of a resulting trust— purchase money cases
The purpose of a resulting trust in favour of a contributor of the purchase price of property applies to both personalty and realty. However, for a contribution to give rise to a presumption of resulting trust, that contribution must be:
(a) CONTEMPORANEOUS with the purchase
(b) directed towards the actual purchase price itself.
What is the presumption of advancement?
(Presumption of a gift)
When the presumption of advancement applies, there is no resulting trust.
The presumption applies when equity regards the transferor as being under a moral obligation to provide for the transferee.
Who does equity consider to owe a moral obligation to who?
(a) from father to child, does not finish
(b) A guardian to ca child, finishes when the child is 18.
(c) by husband to wife
(d) by male fiancé to female fiancé.
Presumption of advancement does not apply if its the other way round
The presumption of resulting trust will apply, unless rebutted by contrary evidence, (if roles are reversed).
What is the equitable maxim ‘equity abhors a vacuum’?
Someone must hold the equitable title.
It is presumed that if the express trust were to fail, the settlor would want the property back.
What formalities are attached to a resulting trust?
Written evidence is needed of an express trust over land in order to comply with s53(1)(b) LPA 1925.
Implied trusts can be created without any formality.
