Resulting trusts Flashcards
When do resulting trusts come into being?
Generally when a trust fails in a situation where the beneficiary has not been specified etc well or beneficiary is no longer. Basically, when an express trust fails for the reasons of lack of certainty regarding objects or subject. Or the charity stops existing.
The trust is now held for the settlor. So, the equitable interest of the trust property is now back with the settlor.
What is a presumed resulting trust?
The presumed resulting trust can be rebuttable.
+ It is a rebuttable presumption of a resulting trust because property has been voluntarily put in the name of another.
When it is not exactly clear whether the property is a gift or is supposed to be held on trust for another.
+ When there is a purchase money resulting trust
What is a purchase money resulting trust?
When X (settlor) contributes money towards buying a property or when they outright buy it for someone else.
It is presumed that the equitable interest reverts to the person doing the contributing.
How can a presumed resulting trust be rebutted and allow for the other person to receive the property completely?
When it can be proved by SLIGHT EVIDENCE that the settlor intended for the property to be a gift or a loan etc.
