Implied Trusts Flashcards
What is the key difference between express and implied trusts?
Express trusts are intentionally created by a settlor with clear formalities. Implied trusts arise from conduct or circumstances, without express intention or formalities
What is an imputed trust?
A trust imposed by courts against the parties’ intentions to prevent unjust enrichment—used as a remedial device
When does a resulting trust arise?
When legal title is transferred but there’s no clear intention to give beneficial ownership—equity steps in to prevent a gap in ownership
What is an automatic resulting trust?
It arises when a trust fails, creating a gap in beneficial ownership—property reverts to the settlor
- Vandervell v IRC [1967]
What is a presumed intention resulting trust?
Arises when someone contributes money or property and equity presumes they didn’t intend to gift it unless evidence proves otherwise
When does the presumption of advancement apply?
In transfers from parent to child (e.g., Re Roberts or Bennet v Bennet), equity assumes the parent intended a gift
Why was there no resulting trust in Pettitt v Pettitt [1970]?
Because a husband’s improvements to property in his wife’s name did not qualify for the presumption of advancement
What is a Quistclose trust?
A special resulting trust where money is lent for a specific purpose, and if that purpose fails, the lender retains beneficial interest
- Barclays v Quistclose [1970]
What is a constructive trust?
A trust imposed by courts where it would be unconscionable for someone to retain full ownership, even without formal intention
What’s the difference between institutional and remedial constructive trusts?
Institutional arise automatically by law; remedial are imposed by courts to prevent injustice
- Chase Manhattan v Israel-British Bank
Why does a transfer of land not usually give rise to a resulting trust?
Because of s.60(3) Law of Property Act 1925, which states that a voluntary transfer of land doesn’t imply a trust unless there is clear evidence of intent
What happens if A contributes 40% to a house bought in B’s name?
A presumed resulting trust arises—A is presumed to have an equitable interest proportional to their contribution, unless rebutted
Why does equity impose resulting trusts?
Because equity abhors a vacuum—if beneficial ownership is unclear or trust fails, equity ensures someone (usually the transferor) retains the interest
