Trusts Arising As A Matter of Law

Question 1

Resulting Trust

Answer 1

Reversionary interest based on the presumed intent of the settlor

Question 2

Constructive trusts

Answer 2

used to prevent unjust enrichment- no vallid express declaration of trust or frequently when no trust was intended – No statute of frauds

Question 3

Resulting Trusts- Purchase money trusts

Answer 3

Whenever the Benny furnishes the consideration for the acquisition of property but with the benny’s consent, title is take in the name of the trustee

Consideration must be for the property- no improvements on property; must be at or before trustee takes title; burden is on benny to prove the trusts; after proof-> Y can rebut by showing no trust was intended

Exceptions: close relationship between parties; unlawful purpose; title obtained wrongfully

Question 4

Resulting trust on failure of express trust

Answer 4

Settlor has conveyed property to a trustee under an expressed trust and: 1) the trust is void or unenforceable; 2) the benny is dead or can’t be located; 3) where cy pres is inapplicable for a charity

Trust terminates and the settlor becomes the benny

Question 5

No resulting trust

Answer 5

1) the instrument specifically or implicitly provides for disposition of property when the trust has failed or been completed; 2) the settlor was given consideration for his original transfer in a trust; 3) the settlor created the trust for an illegal purpose; 5) cy press is applicable

Question 6

Implied constructive trusts

Answer 6

Actually a flexible equitable remedy to prevent unjust enrichment from wrongful conduct

Arises out of: conversion; fraud; duress; breach of fid duty; homicide

No constructive trust when: breach of a promise unless confidential relationship; promise by decedent; promise to debtor at foreclosure sale