Resulting trusts

Question 1

What is a resulting trust?

Answer 1

A form of implied trust and occurs when there is a transfer of property to another where it is unclear who owns the beneficial interest.

Question 2

What are the two types of presumptions that the law applies when determining whether a trust exists?

Answer 2

Presumption of a resulting trust

Presumption of advancement

Question 3

What is the presumption where there is a voluntary transfer of personalty?

Answer 3

If A transfers personalty they already own to B for free, a presumption of resulting trust will arise.

B will own the legal title title and A will get the equitable title in the property.

Question 4

How can you rebut the presumption of voluntary transfer of personalty?

Answer 4

By evidence of actual intention e.g. money in a birthday card

By the presumption of advancement