Chapter 7: Resulting Trusts Flashcards
what are the two types of resulting trust?
presumed resulting trust
automatic resulting trust
who holds which interest in a resulting trust?
transferee holds legal interest (trustee)
transferor holds equitable interest (beneficiary)
what is the presumption of a resulting trust?
Presumed the transferor does not intend to lose beneficial interest for no consideration
what are the 2 examples of a presumed resulting trust?
- Voluntary transfer of property to another
- Purchase of property in the name of another
what are 2 examples of voluntary transfer of property to another?
A transfers property to B for no consideration
A pays for property in Bs name
what must the court consider in an illegal transfer?
Reason for the illegal conduct
Policies that would be affected denying a resulting trust
If denying a resulting trust is proportionate
Court will consider if a resulting trust will give effect to an illegal act.
what happens if A contributes to the purchase price of a property in B’s name?
B holds the property on trust for himself and A in shares proportionate to their contributions.
how can someone rebut the resulting trust presumption?
Evidence the gift was intended as an outright gift
Counter presumption of advancement
when can evidence made before, at the time or immediately after the transfer be used in practice to rebut the presumption?
used by the transferor to show a resulting trust
used by transferee to prove presumption of advancement (outright gift)
when can evidence made subsequent to the transfer be used?
can only be used by the transferee to prove presumption of advancement - show there is an absolute gift
What are the 4 scenarios of an automatic resulting trust?
failure of beneficiaries
partially expressed trust
trust is void e.g public policy / fails perpetuity rule
valid express trust with surplus funds
