Implied Trusts Flashcards
In which three situations do resulting trusts commonly occur?
Where a transfer on trust wholly or partially fails but the property has been transferred to the trustee - automatic
When a person gratuitously transfers property to another person - presumed
Where a person pays all or part of the purchase price for an asset - presumed
What do automatic resulting trusts do?
Arise where there has been some failure in the creation of a transfer on trust - a default position where the beneficial interest returns to the settlor
When will an automatic resulting trust not happen?
If a trust fails due to a lack of constitution - legal title never moved from the settlor and therefore no need to return anything
Does an issue with one of the three certainties always mean that there will be a resulting trust?
No - self-declaration of trust which fails for uncertainty of objects / subject matter will simply have no effect.
Settlor remains full legal owner of property
If property is left in a will and there is a lack of clarity about whether it is a trust - will be a straightforward gift.
What is the legal position if a legal owner of property transfers it to a third party during their lifetime but fails for certainty of intention?
If there is evidence that was intended to be a gift - that is effect
If no evidence - presumed resulting trust
What happens if a transfer is gratuitous and there is no evidence that the transferor intended the recipient to receive the property as a gift?
Presumed resulting trust will arise
Can be rebutted by evidence that the transferor’s intention is inconsistent with that of a trust e.g. consideration or intention to give a gift
When will a purchase money resulting trust be implied?
Someone pays all or part of a purchase price for an asset for someone else
Or when two people contribute to purchase price but legal title is in one of their names / does not reflect their financial contributions
What are the only ways that legal title to land can be held?
Sole legal owner
Up to four legal owners as joint tenants
What are presumed resulting trusts NOT used for?
Determining beneficial entitlement to land acquired jointly e.g. family home
Common intention constructive trusts instead
In which situations does the presumption of a resulting trust NOT arise because the relationship between transferor and transferee gives rise to the presumption of advancement (presumption that transfer was intended as a gift)?
Husband to wife - including during engagement prior to marriage - ambiguous re same sex partners
Parent to child (father to child)
Loco parentis to a minor child s
