resulting + constructive trusts

Question 1

resulting trusts involve

Answer 1

revisionary interests

revisionary interest - the right to resume ownership of property if and when certain conditions are met**.

Question 2

what types of resulting trusts

Answer 2

1. purchase money resulting trusts
2. resulting trusts arising on failure of an express trust
3. excess corpus - resulting trusts arising from an incomplete disposition of trust assets

Question 3

who is the B of a resulting trust

Answer 3

the S and if S dead → then S’s successors become the Bs

Question 4

when does a resulting trust happen

Answer 4

when S has conveyed property to T under express trust and

1. trust is void or unenforceable
2. B is dead or cannot be located
3. can also apply when CT fails and cy pres doctrine is inapplicable

Question 5

resulting trust will not be implied where

Answer 5

1. Trust instrument specifically or implicitly provides for disposition of trust property but the trust has failed or been completed (so disposition of property cannot be completed)
2. S was given consideration for the original transfer in trust
3. S created the trust for an illegal purpose -OR-
4. Cy pres is applicable in cases of CT

Question 6

resulting trust in favor of S arises wen

Answer 6

trust purpose is fully satisfied and some trust property remains

Question 7

purchase money resulting trust (PMRT)

Answer 7

PMRT is presumed when B gives consideration to acquire real or personal property → but with Bs consent, title is taken in name of T

Question 8

consideration given for PMRT

Answer 8

consideration given by B must be for the purchase of the property

so $$ paid to improve property or taxes paid do not give rise to a trust

Question 9

when must consideration for PMRT be gien

Answer 9

at or before T takes title

Question 10

BOF for a PMRT is on

Answer 10

the B to prove by clear and convincing evidence that they supplied the consideration

Question 11

rebuttable presumption of PMRT

Answer 11

once B proves they gave consideration a resulting trust is presumed but T can rebut by showing that no trust was intended (ie T can show payment was a gift, loan, debt owed to T)

Question 12

rebuttable presumption of PMRT exception

Answer 12

once B proves they supplied the consideration, a resulting trust is presumed. however, T can rebut by showing that no trust was intended

no trust presumption when:

1. parties have close personal relationship so instead of presumed trust, a gift is presumed instead
2. when B + T take title for illegal purposes, a trust cannot be presumed
3. when transferee obtains title wrongfully, trust cannot be presumed (but a constructive trust can be!)

Question 13

constructive trusts are

Answer 13

used to prevent unjust enrichment

so not really a trust but rather an equitable remedy to prevent the unjust enrichment resulting from wrongful conduct

Question 14

how to get a constructive trust

Answer 14

request as a remedy in court action; not automatic remedy → has to be pled and proven thru clear + convincing evidence