Trust

Question 1

A resulting trust arises where …

Answer 1

the court implies a trust an declares the settlor or their heirs to be the beneficiary.

Question 2

A resulting trust is an indirect trust that is implied by the court based what?

Answer 2

Based on the nature of the transaction or intention of the parties.

Question 3

A resulting trust ariuses when:

Answer 3

(1) an express trust fails in part or in whole,
(2) a settlor makes an incomplete disposition of the trust property and the excess reverts back to the settlor or their successors, or
(3) a purchaser pays the purchase price of the property and causes title to be taken in another’s name (purchase money resulting trust).

Question 4

When does a purchase money resulting trust arise?

Answer 4

when one party pays the purchase price for a property and causes title to be taken in another party’s name.

Question 5

What are the presumptions in a purchase money resulting trust?

Answer 5

1. If the parties are not related there is a presumption that the person supplying consideration did not intend to make a gift, rather, the person intended for the grantee to hold the property and trust for them.
   —This one can be rebutted by clear and convincing evidence that the purchase was intended as a gift or a loan.
2. An opposite presumption applies if the grantee is a child, spouse, or parent of the person who paid the purchase price- in this case, a gift is presumed