Resulting Trusts

Question 1

Which case established the two types of resulting trusts?

Answer 1

Re Vanderwell’s Trusts

Question 2

When does a presumed resulting trust arise?

Answer 2

When A pays B or contributed wholly/partially to the purchase price of property held by A, or A and B jointly, the money/property is held on PRT for A in shares proportionate to their contribution

Question 3

When does an automatic resulting trust arise?

Answer 3

Where there is a failure of the trust to fully dispose the beneficial interest

Question 4

Which case provided the contemporary circumstances in which PRTs and ARTs arise?

Answer 4

Westdeutsche Landesbank v Islington

Question 5

What happens to the beneficial interest of a resulting trust?

Answer 5

The beneficial interest in the trust property reverts back to the settlor or his estate

Question 6

Give a case of a partially expressed trust which causes an automatic resulting trust to arise?

Answer 6

Vanderwell v IRC

Question 7

Give an example of an automatic resulting trust arising from surplus funds

Answer 7

Re Gillingham Bus Disaster Fund - where the surplus funds resulted to the donors, but if they couldn’t be found should be paid to the court