Constructive and Resulting Trusts Flashcards
Explain the presumption of advancement.
This applies where equity regards transferor as being under moral obligation to provide for the transferee. It applies in cases of voluntary transfers and the provision of purchase money:
a) from father to child (child here can be either a minor or adult);
b) from person who is a guardian who has taken on the responsibility to provide financially for a child (although this responsibility usually ends when the child turns 18);
c) from husband to wife;
d) by fiancé (male) to fiancé (female) as long as the couple subeseuqntly marry.
Note that presumption does NOT apply if the roles are reversed (eg wife to husband or adult child to father). in such situations a resulting trust will apply unless rebutted by contrary evidence.
Explain promissory estoppel in relation to beneficial interests in property.
Promissory estoppel will apply where there was an assurance and detrimental reliance. Eg a non-owning partner contributing equally to mortgage repayments and household expenses will sufficiently satisfy these requirements.
A man and a woman lived together in a property bought in the sole name of the woman. The court has found that the man has an equitable interest in the property under a constructive trust. How will the court determine what share the man is entitled to?
Court will first try to establish the parties’ intention as to the shares by looking back over the course of the relationship. If that isn’t possible, they will then assess what share would be fair given the circumstances.
