Resulting Trusts Flashcards
What does the beneficiary principle state?
Every trust, except charitable trusts, must have a beneficiary or beneficiaries to enforce it
What purpose do resulting trusts serve?
Returning property to its original or rightful owner
What are the two types of resulting trusts?
- When an estate is purchased in the name of one person, but the money or consideration is given by another
- Where a trust is declared only as to part, and nothing is said to the rest, what remains undisposed of results to their heir at law
Where were the two types of resulting trusts confirmed?
Westdeutsche Landesbank Girozentrale v Islington London BC [1996]
What case were these two types of resulting trusts established?
Lloyds v Spillett [1740]
What happens if the trust fails?
The trust property returns to the original settlor
What did Re Boyes [1884] confirm would cause a trust to fail?
Failure to name a beneficiary
What did Re Cochrane [1955] confirm would cause a trust to fail?
Unforeseen error in the trust
What did Re Gillingham Bus Disaster Fund [1958] confirm would cause a trust to fail?
Invalid as a charity
What did Air Jamaica v Joy Charlton [1999] confirm would cause a trust to fail?
Surplus money in a pension fund
What are presumed resulting trusts?
Only presumptions, the court will find a resulting trust, unless there is evidence to the contrary
What is voluntary transfer to another?
The court presumes that if A transfers property to B and B provides no consideration in return, that B will hold on resulting trust for A
What happened in the case of Fowkes v Pascoe [1874-5]?
The presumption can be displaced by the evidence
What was said in the case of Press v Petrodel Resources [2013]?
There was no evidence to displace the presumption
What is financial contribution to the purchase price?
The presumption that the person with the legal title holds on resulting trust for those who have contributed to the purchase price. Their equitable interests are in proportion to the size of their respective financial contributions
What was held in the case of Dyer v Dyer?
The person who has the legal title and beneficial title is the one who puts down the purchase money
What was said in the case of Tinsley v Milligan?
This presumption can be displaced by another presumption
What is the presumption of advancement?
It is presumed that a man would want to provide for his wife and children. So if he transfers property to them and receives no consideration in return it is not a resulting trust it is a gift.
What was said in the case of Re Eykyn’s Trust [1877]?
Where a husband transfers money or other property into the name of his wife only then the presumption is that it is a gift
What was established in the case of Bennet v Bennet [1879]?
A person in loco parentis means a person taking upon himself the duty of a father of a child to make a provision for that child. There is no obligation in equity for a mother to provide for her child.
How can a presumption of advancement be rebutted?
By the evidence
What two cases condemned the presumption of advancement?
Pettit v Pettit
Stack v Dowden
What did Pettit v Pettit say regarding presumption of advancement?
They belong in a different social era and should not be used for family cases
What did Stack v Dowden say regarding presumption of advancement?
Who paid for what is more important as social and economic conditions have changed
