Trusts Wrap Up

Question 1

Resulting Trust

Answer 1

Trust arising by Operation of Law

Express trust fails or makes an incomplete disposition:
Trustor devises property to X to pay income to B for life, and B’s death, to B’s issue. B has no issue. Resulting trust for T’s heirs (or devisees).

Purchase Money Resulting Trust:
Susie purchases Blackacre with money provided by Mom. Unless S can show that M intended to make a gift to S, S holds title in resulting trust for M.

Question 2

Constructive Trust

Answer 2

Remedy for some form of wrongdoing or breach of trust by the Trustee

Applications of Constructive Trust Remedy:
1. Unjust Enrichment
2. Oral Inter Vivos Trust in Land
3. Oral trusts for Disposition at death (Secret/Semi-Secret Trusts)

Question 3

Honorary Trust

Answer 3

When a trust is established that had neither a charitable purpose, nor a private beneficiary to enforce the Trust

Question 4

Requirements to use CT remedy for oral inter-vivos trust in land

Answer 4

1. Oral agreement to hold land in trust.
2. Confidential relationship: Social or familial.
3. Circumstances warranting enforcement by a court of
   equity (Party seeking enforcement must have “clean hands”)