Unit Six (Key Info)

Question 1

RESULTING TRUST

Answer 1

A resulting trust occurs when property or assets are transferred to someone, but it’s understood or implied that they should hold onto them for the benefit of someone else. It arises when it’s clear the recipient wasn’t meant to keep the property for themselves. For example, if you give money to a friend to buy a house, but it’s understood it’s for your benefit, a resulting trust may be established.

Question 2

CONSTRUCTIVE TRUST

Answer 2

it would be unconscionable for the person with a legal title to not hold a beneficial interest for another person