Resulting Trusts

Question 1

How is a resulting trust made?

Answer 1

it arises by implication from settlor’s conduct

Question 2

Who benefits from a resulting trust?

Answer 2

settllor, or settlor’s successors in interest (no beneficiaries like a normal trust)

Question 3

What is the purpose of a resulting trust?

Answer 3

to do what the settlor would’ve done if he had thought about it.

Question 4

When an express trust fails, what does the settlor have?

Answer 4

An implied reversionary interest.

Question 5

If there is no provision for remainder, what will courts do?

Answer 5

Find a resulting trust in favor of the settlor, or the settlor’s successors in interest

Question 6

What is a purchase-money resulting trust?

Answer 6

it arises when one pays the consideration for a transfer of property (real or personal) but has the title taken in the name of another.

Question 7

in a purchase money resulting trust, if the payor is a close relative of the grantee, the presumption is

Answer 7

that it is a gift and not a PMRT.

Question 8

if the payor is not a close relative of the grantee, then

Answer 8

PMRT.

Question 9

If the payor expects to be repaid,

Answer 9

the relationship is a loan, not a PMRT. in a PMRT, the payor expects to receive an interest in the property, not his $$ back.