Implied trusts Flashcards
Types of implied trusts
1) Resulting trust
2) Constructive trust
3) Proprietary Estoppel
Resulting Trust - Definition
They are implied where a person transfers property or money to another in circumstances where it is unclear who owns the beneficial interest
Resulting Trust - Situations
1) Where A makes a voluntary transfer to B or pays (wholly or in part) for the purchase of property which is vested in either B alone or in the joint names of A and B, there is a presumption that A did not intend to make a gift to B: the money or property is held on trust for - Voluntary Transfer/purchase money cases
2) - Where A transfers property to B on express trusts but the trusts declared do not exhaust the whole beneficial interest - incomplete disposal of trusts’ equitable interest
Resulting Trust - Voluntary transfer
X transfers property which he owns to Y for no consideration. The presumption is that Y holds the property on resulting trust for X
Resulting Trust - Purchase money
X purchases property in the name of Y there is a presumption that X intended Y to hold on a resulting trust for X.
Resulting Trust - Which presumption applies? - Presumption of advancement (gift)
1) Arises when a father makes a voluntary transfer or purchases property in the name of his child
2) When a person in loco parentis makes a voluntary transfer or purchases property in the name of a child
3) When a husband makes a voluntary transfer or purchases property in the name of his wife
Resulting Trust - Incomplete disposal of a trust’s equitable interest - When does it arise
1) When the attempt to create a trust fails
2) The settlor does not dispose of all or part of his equitable interest
Constructive Trusts - Definition
Used when determining cohabitees’ rights in their family home when the title is only in one person’s name.
Constructive Trusts - Criteria
1) A common intention to share ownership of the land. This may be express or inferred from conduct
2) Detrimental reliance - acted on his in reliance on the common intention
Constructive Trusts - Express common intention
Would exist if Y gave assurances or there was some agreement that ownership of the property was shared. Meeting some of the household bills may be sufficient if the payments were substantial and enabled the other party to pay the mortgage
Constructive Trusts - Inferred common intention
From direct contributions to the purchase price. Payment of household expenses will be regarded as an indirect contribution to the purchase price if the payments are substantial and are made pursuant to an agreement that the parties will share the mortgage and expenses equally with one paying the mortgage and the other paying the general household expenses.
Constructive Trusts - Detrimental reliance
The claimant had to show that she had ‘significantly altered her position in reliance on the agreement’. Substantial contribution to household expenses and bringing up the children can be held to amount to sufficient detriment.
Proprietary Estoppel - Definition
This can only be used as a defence to a claim brought by another.
Proprietary Estoppel - Pascoe v Turner
The legal owner of a house had repeatedly told his unmarried partner that the house was hers. He was estopped from denying her an interest in the house after she had effect improvements, repairs and decoration in reliance on his assurances.
Proprietary Estoppel - Stages
1) Consider whether proprietary estoppel gives rise to the ‘equity’
2) Decide which remedy will satisfy the equity
