Family Home Trusts

Question 1

Married or in a Civil Partnership?

Answer 1

Court has statutory powers to deal with the distribution of assets in the event of divorce or dissolution.

Question 2

Property held in joint names

Answer 2

Where property has been transferred into joint names, the presumption is that they hold the beneficial interest equally however presumption can be rebutted by the evidence to the contrary (I.e kept finances separate).

Question 3

Resulting Trust

Answer 3

Where C has contributed to the purchase price there is a presumed resulting trust in proportion to the contribution. Contribution can be illustrated by:
- direct contribution to purchase price;
- paying mortgage instalments;
- discount available to a sitting tenant.

Question 4

Common Intention Constructive Trusts - Express Agreement

Answer 4

C must prove:
- agreement to share (can be oral or where owner provided an excuse why the property was not conveyed to the two of them); and
- acts of detriment (heavy work done on the house, paying deposit, purchase price or mortgage but not domestic duties and bringing up the children).

Question 5

Common Intention Trust - Inferred by Conduct

Answer 5

Inferred by payment towards the purchase, contribution to the initial deposit or the discount available to a sitting tenant.

Question 6

Relationship between CIT and RT

Answer 6

Once C can prove an intention to share property, resulting trust principles are displaced. The court is not bound to award beneficial interests proportionate to C’s contribution but is free to award a larger beneficial interest.

Question 7

Proprietary Estoppel

Answer 7

The legal owner promised the C a share of the family home and C relied on that promise and suffered a detriment.