Resulting Trusts

Question 1

Why do resulting trusts occur?

Answer 1

Trust purposes never declared (Robbie’s JF v MacCrae)

Trust purposes contrary to public policy (McCaig v Kirk Session of Lismore)

Trust estate left after carrying out trust purposes (Anderson v Smoke)

Question 2

Nature of the resulting trust

Answer 2

Legally implied term (Gretton)

England - new trust has formed

Question 3

What happens if trust purposes fail?

Answer 3

Truster might specify what he wants to happen or goes to Crown (Westdeutschebank v Islington)

Question 4

Resulting trusts in England

Answer 4

Far wider than Scotland. Incomplete disposal of beneficial interest behind express trust. Equity abhors a vacuum, much more desire to throw it back to settlor ASAP. Can also be gift failing

Question 5

South Africa

Answer 5

All situations which would see a resulting trust in England are solved by unjustified enrichment, just pay back for what you owed, bring action to retrieve property

Question 6

Who should get trust property if not specified / truster says he doesn’t want it?

Answer 6

Air Jamaica
Goes back to truster even if he said no
Preventing unjustified enrichment, not really intention of testator
NOT beneficiaries

Question 7

What happens if trust purposes never declared?

Answer 7

Resulting trust e.g. In Thomas v Tennent’s Trs, revoked will which created trust. Holding for him as resulting trust then when he died, holding for heirs at law

Question 8

Robbie’s JF v MacCrae

Answer 8

Testator ordered trustees to give money to charities, didn’t specify which. Trustees died before spent all money. JF - no, personal nature of trusteeship important here. Couldn’t appoint new trustees either for this reason so ended up being resulting trust

Question 9

McCaig v Church of Lismore

Answer 9

Public policy denied where extravagant and useless and no one would see it

Question 10

Templeton v Burgh of Ayr

Answer 10

Rebuild not just repair so not resulting trust

Question 11

Anderson v Smoke

Answer 11

Disabled son, only spent some of it. Daughters or resulting? Returned to settlor - heir.

Question 12

Haig v Lord Adv

Answer 12

Pension fund.
Return to employees? No as would be unjustly enriched?

Clear from deed that had to go to trustees

Question 13

Air Jamaica

Answer 13

Resulting trust for those who provided it ie company. Only crown when truster could not be found

Question 14

What is a resulting trust?

Answer 14

Purposes fail or for some other reason trust cannot be carried out, trust property returns to truster or his representatives
Presumed intention of truster