Resulting Trusts

Question 1

Presumptions of resulting trust and advancement

Answer 1

PRESUMPTION OF RESULTING TRUST:
*Voluntary transfer of personalty
*Voluntary transfers of land
*Purchase money cases

PRESUMPTION OF ADVANCEMENT:
a)from father to child;
b) from person in loco parentis to child;
c) By husband to wife; and
d) by fiance (male) to fiance (female), so long as the couple subsequently marry

Question 2

Resulting trusts when the beneficial interest is not completely disposed

Answer 2

When property is transferred to a third party with the intention that an express trust be created, but something goes wrong that prevents the express trust taking effect, then a resulting trust is implied in favour of the settlor. The resulting trust vests the beneficial title back into the name of the settlor.

An attempted trust might not dispose of the equitable interest where:
a) there is a gap in the beneficial ownership because there is no beneficiary who attains a vested interest (person dies before reaching some age)
b) the attempted trust lacks certainty of objects (to ‘my best friends’)
c) the attempted trust does not define the beneficial interest with sufficient certainty (‘decent amount’)