Resulting Trusts

Question 1

Presumed Resulting Trust Types

Answer 1

A transfers property to B for no consideration
A pays for property but the property is in B’s name
A contributes to purchase price of property in B’s name - B holds the property for himself and A in shares proportionate to their respective contribution.

Question 2

Rebutting the presumption

Answer 2

The presumption can be rebutted by evidence that the transfer was an outright gift
Where a person transfers property or contributes to the purchase price and their relationship is loco parentis (in the place of a parent) the transfer is presumed to be a gift. Only works is transfer is parent to child and not the other way.

Question 3

Admissible Evidence

Answer 3

Subsequent acts and declarations made by the transferor are viewed with mistrust by the court and cannot be used as evidence to prove that the transferor never intended to make the gift.

Question 4

Automatic Resulting Trust Types

Answer 4

Where there has been a failure of the beneficiaries.
Partially expressed trusts.
Trust that is void as it goes against public policy or for offending the perpetuity rule.
If there is a surplus of funds after the trust has been performed.