Resulting trusts Flashcards
What are the 2 forms of implied resulting trusts?
Automatic and presumed
What are the 4 types of automatic resulting trust?
No valid trust
Trust fails
Unused surplus
Quistclose trust
What type of resulting trust was vandervell v Irc?
Automatic resulting trust - no valid trust
Give an example of a failed trust. Explain.
Re Cochrane’s settlement trust - A situation where an eventuality develops which is not accounted for by the terms of the trust, e.g. for x for life, when X dies there is no beneficiary so the trust results to the donee
What are the facts of BB v Quis?
This developed in the case of barclays Bank v Quistclose. Money lent to Rolls Razor Ltd for purpose of payment however company went bust. BB tried to use money lent by quistclose as part of the assets of RR, however not allowed to as on a resulting trust for quistclose so ring fenced
What did Lord WIlberforce believe had been created in regards to Quistclose?
A primary trust for the creditors and a secondary trust for the third person
Describe the judgment in Twinsectra v Yardley
A resulting trust was created by the loan of money, as the beneficial interest never left the donnee, therefore the money resulted to the lender upon bankruptcy - per Lord Miller
What is an unused surplus trust? Give 2 examples
Where there is extra property than that which the trust was set up for. In this case the property will either be seen as a gift with a motive (Re Abott Fund) or a resulting trust (re Gillingham Bus Disaster)
What are the 2 types of presumed resulting trust?
Voluntary conveyance
urchase money resulting trust
What is a voluntary conveyance resulting trust?
Where someone makes a transfer of property to someone for no consideration. here equity presumes a resulting trust - Re Vinogradoff
Which statutory law says that a resulting trust is not automatically implied in a conveyance?
S60(3) LPA 1925
What case shows a resulting trust can be inferred into a voluntary conveyance?
Hodgson v Marks (transfer to lodger, but beneficial interest so resulted to mother)
What is a purchase money resulting trust?
Where a purchase is made by A for B, or by A for A + B. In this situation an equitable interest will arise proportionate to the proportion of the purchase price paid - Dyer v Dyer
What is the authority for a resulting trust not being implied into the matrimonial home?
Stack v Dowden - as this would create inequality for the weaker economic party
Give an example of a presumed resulting trust in the name of another.
Abrahams v Trustee in Bankruptcy of Abrahams
