SIXTH CONCEPT: RESULTING TRUSTS

Question 1

Define a “resulting trust”

Answer 1

an implied in fact trust and is based upon the

presumed intent of the parties.

Question 2

What if the court decrees a resulting trust?

Answer 2

the resulting trustee will transfer the property to the settlor if the settlor is alive, and if not, to the settlor’s estate

Question 3

“Settler creates a trust to enable her daughter to obtain a law school education.” What happens to the trust after the daughter completes her law school education?

Answer 3

We presume the settlor wants the property back.

Question 4

when a private express trust fails, because there is

no beneficiary What happens to the trust?

Answer 4

we presume settlor wants the property back: to settlor if alive, and if not, to settlor’s estate. (a resulting trust.

Question 5

Settler creates a trust for building and maintaining a free hospital, and there is not enough money, if cy pres cannot be used back to settler if alive or settlers estate what happens?

Answer 5

There is a resulting trust and it goes back to the settlor or his estate.

Question 6

Settlor creates a valid private express trust, but due to excellent investing, there is more than enough corpus available to accomplish the trust purpose. With respect to that excess corpus what happens?

Answer 6

A resulting trust back to the settlor or his estate.

Question 7

A pays consideration to B, to have title to property transferred to C. what is this called?

Answer 7

A purchase money resulting trust.