Resulting Trusts Flashcards
What is a resulting trust?
A trust which is implied in equity where the settlor has not expressed their intention to create a trust.
In such cases a trust will be presumed to ensure a fair outcome.
What is a purchase money case?
Where one party contributes to the purchase of a property which is registered in the name of another.
The contributing party has an equitable interest in the property proportionate to their share under the resullting trust.
For purchase money cases, how must consideration be paid?
Must be paid for the purchase price, not improvements or taxes
When must consideration be paid for purchase money cases?
Must be paid at the time or before the trustee gets title.
Reimbursing the title holkder after the purchase does not give rise to a resulting trust.
in purchase money cases, who is the burden of proof on?
The person claiming to be a beneficiary must prove that they paid consideration.
In a resulting trust, how can a title holder rebut the presumption?
- Show there was No intention to create a trust
- Money used for the purchase price was actually a gift, loan or payment for debt owed to them.
What is the presumption of advancement?
If a person transfers money or property to their spouse or child, this is considered to be a gift.
How can the presumption of advancement be rebutted?
- The transferor can prove that they did not intend to make a gift
Or - The proeprty is transferred for tax purposes.
If proeprty was transferred as aprt of an illegal or fraudulent transaction, can the court declare a resulting trust?
Yes, the court MAY decide to allow a claim for a resulting trust.
What will be presumed if a voluntary truist fails?
A resulting trust will be presumed.
What happens if any of the 3 certainties are missing in an express trust?
The trust will fail and the trustee will hold the property on resulting trust for the transferor. \
They need to transfer it back to the transferor.
