Resulting Trusts Flashcards
When do resulting trusts arise?
1) Failure of express trusts; 2) apparent gifts; and other situations.
What are the two types of resulting trust? Which judge made this distinction and in what case?
1) Automatic resulting trusts; and 2) presumed resulting trusts. This distinction was made by Megarry J (Re Vandervell’s Trust).
What are the questions to ask when determining whether an automatic resulting trust exists?
1) Did an express trust fail, leaving the trustee with a surplus?; 2) did the settlor intend a gift of the surplus to the trustee?; and 3) who is the settlor?
What are ways in which an express trust may fail? Which case illustrates this?
1) Trust valid, but incomplete; 2) objects invalid or missing; 3) lack of formality (Air Jamaica v Charlton).
What are the categories of presumed resulting trusts?
1) Voluntary transfer presumed resulting trust, and 2) purchase contribution presumed resulting trust.
How does a voluntary transfer presumed resulting trust work?
If A simply transfers property he owns to B, then that will raise the presumption that B holds the property on resulting trust for A.
At least how many parties are needed for a purchase contribution PRT to arise?
Three parties.
How does a purchase contribution PRT arise?
If A pays C to transfer property to B, ie buys property to be put in B’s name, then there will be a presumption that B holds the property on resulting trust for A.
