Resulting and Constructive Trusts

Question 1

Types of resulting trusts

Answer 1

Purchase money resulting trusts
Resulting trusts arising on failure of an express trust
Resulting trusts arising from an incomplete disposition of trust assets

Question 2

Beneficiaries of Resulting trust

Answer 2

Settlor

Question 3

Circumstances giving rise to RT

Answer 3

Trust is void or unenforceable
Beneficiary is dead or cannot be located

Question 4

Circumstances where RT not implied

Answer 4

Trust instrument specifically or implicilty provides for disposition of trust property when the trust has failed
Settleor was given consideration for their original transfer in trust
Settlor created the trust for illegal purposes
Cy pres is available

Question 5

Purchase Money Resulting Trusts

Answer 5

Presumed whenever B furnishes the consideration for the acquisition of real or personal property but, with B’s consent, title is taken in the name of trustee

Question 6

Rebuttable presumption of PMRT

Answer 6

If B proves they provided the consideration, T can attempt to show no trust was intended

Exception: where parties are closely related, presumed to be a gift

Question 7

Constructive trust

Answer 7

Equitable remedy to prevent unjust enrichment from wrongful conduct

Question 8

Availability of constructive trust

Answer 8

Must be requested as relief

Question 9

CT from breach of promise

Answer 9

General rule: N/A
Exception: fraudulent promise; breach of promise by one in confidential relationship