Resulting Trusts Flashcards
What is a resulting trust?
Implied trust
Trust is created not becuase settlor has directed, but they are created through operation of law.
Resulting trusts are implied where a person transfers property to another in circumstances which s UNCLEAR who owns the beneficial interest.
What is the presumption of a resulting trust?
If there is a voluntary transfer of personalty (anything that is not land), a presumption of resulting trust will arise.
If A transfers personality they already own to B for free, B holds the legal title and A gets equitable interest.
Can the presumption of a resulting trust be rebutted?
Yes, it can be rebutted by evidence of their actual intention.
What happens with a resulting trust if there is a voluntary transfer of land?
Less likely to apply to land. In a voluntary conveyance a resulting trust for grantor shall not be implied merely by reason that the property is not expressed to be conveyed for the use r benefit of the grantee.
Is there a resulting trust if X purchases property from a seller, put in the name of Y?
Y will become the owner holding legal title to the Property, however there may be a presumption that X intended Y to hold that property in resulting trust for X .
What is the presumption of advancement?
There is no resulting trust, and the transferor is reused to be giving the prperty.
This applies to:
Father To child
Person in loco parents to child (guardian)
Husband to wife
By fiancé to fiancée
NOT if the roles are reversed.
Can you rebut the presumption of advancement?
Yes, evidential burden of prof, to identify.
If there is evidence that somene else was intended, these presumption are rebutted.
What happens to a resulting trust when the beneficial interest is not completely disposed of ?
If someone goes wrong that prevents the result from taking effect, then a resulting trust is IMPLIED in FAVOUR OF SETTLOR.
These are called automatic resulting trusts.
What are automatic resulting trusts?
Trusts that arise back tot he settlor as beneficiary, if the trust fails.
When does an automatic resulting trust arise?
If settlor transfers property to trustees on trust,
But the anticipated trust does not dispose of all or part of the equitable interest.
When may an attempted trust might not dispose of the equitable interest?
If there is a gap in beneficiary ownership because there is no beneficiary who attains vested interest
Attempted trust lacks certainty of objects
Attempted trust does not define beneficial interests
Attempted trust offends rules agains perpetuity
Attempted trust offends beneficiary principle
What are the formalities for a resulting trust?
Do NOT need written evidence.
Implied trust can be created without ANY FORMALITY
