Resulting Trusts

Question 1

What is a resulting trust?

Answer 1

A trust implied by law where the equitable interest reverts back to the settlor or their estate

Question 2

If A transfers property to another without _________, a resulting trust will be implied if there’s no evidence/reason for the transfer

Answer 2

consideration

Question 3

If A gives money to B to purchase ____ or _________ property, but legal title is taken in the name of B, they will be presumed to hold the legal title on resulting trust for A

Answer 3

real, personal

Question 4

A may rebut the presumption on legal title of property under 3 circumstances. What are they?

Answer 4

1. A made a gift to B
2. A made a loan to B
3. A paid a debt owed to B

Question 5

What is the presumption if A and B contribute to the purchase price of property, but legal title is held only in B’s name?

Answer 5

B is presumed to hold legal title on trust for both themselves and A in proportion to their respective contributions

Question 6

No presumption of trust arises under three circumstances - what are they?

(Clue: think about the relationship between A and B)

Answer 6

1. A is B’s husband/fiance
2. A is B’s father
3. A stands loco parentis to B

Question 7

A resulting trust will also arise if S creates an express trust and conveys legal title to trust property to T, and the trust _____ or ____ __ _______ of all the trust property

Answer 7

fails, fails to dispose

Question 8

If a property transfer was made as part of an illegal or __________ transaction, the court must decide whether it is in the _____ _________ to allow a claim.

Answer 8

fraudulent, public interest