Resulting Trusts Flashcards
When do automatic resulting trusts arise?
They arise from a failed transfer of the equitable interest in property, leaving a property ownerless. E.g:
Failure of beneficiaries - e.g. a trust ‘to A for life, then to A’s children absolutely’
Where an express trust fails
Surplus funds/property
When does a presumed resulting trust arise? 3 situations:
Presumed resulting trusts arise when the transfer of property fails and there is no reason to assume it was intended as an outright gift.
A rebuttable presumption of a resulting trust applies where there is:
A voluntary transfer of property;
Purchase of property in the name of another; or
Where there is a contribution to the purchase price.
How do you rebut the presumption of resulting trust?
The presumption can be rebutted by evidence to the contrary. Evidence should be contemporaneous to the transfer at the time it took place. Evidence must satisfy the 3 certainties.
What is the counter-presumption of advancement?
The counter-presumption of advancement applies where a person transfers property/contributes to the purchase price of property to another and due to their relationship it is presumed to be a gift.
e.g. husband to wife, father to son, fiancé to fiancée, someone to whom the father is in loco parentis.
Does NOT apply to transfer of property from wife to husband.
Presumed resulting trusts vs. automatic resulting trusts:
Presumed resulting trusts - established situations.
Automatic resulting trusts - default trust fails.
