Trusts

Question 1

A resulting trust arises when:

Answer 1

(i) an express trust fails in whole or part
(ii) a settlor makes an incomplete disposition of the trust property and there is excess corpus; OR
(iii) a purchaser pays the purchase price of the property and causes title to be taken in another’s name (purchase money resulting trust)

Question 2

A purchase money resulting trust arises when

Answer 2

a purchaser, prior to or at the time of purchase, pays for certain property or assumes payment for all or part of the purchase price but cases title to be taken in another’s name.

Purchaser must prove that he paide the purchase price by clear and convincing evidence and not in the capacity of a lender or agent.

Also, the parties cannot be related (otherwise a gift is presumed)