06 Resulting Trusts 2025

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The document discusses the concept of resulting trusts in equity law, defining them as arising when property is transferred without the intention to confer a beneficial interest to the transferee. It outlines three main circumstances under which resulting trusts occur: voluntary transfers, purchases in another's name, and failures of express trusts. The document also explores the presumptions associated with resulting trusts, their historical context, and their relationship with constructive trusts. Additionally, it critiques the equitable presumptions of advancement and resulting trust, highlighting their relevance in familial relationships and legal disputes over property ownership.

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How do you identify a resulting trust?

A resulting trust arises where title to a property, or another asset such as a bank account, is held in the name of X but the true owner of all or part of it is Y due to the contribution that Y made to the purchase of it. In this case, X is the notional trustee and Y the beneficiary.

What are the three types of trust?

Broadly speaking, resulting trusts arise where a person has created an express trust, but has not disposed of the beneficial interest in the trust property, or the person has transferred titled to another party, while not completely holding the intention of disposing the beneficial interest in the property.

What is the difference between presumed and automatic resulting trusts?

In Re Vandervells Trusts (No 2), he divided them into two categories; presumed resulting trusts, which are created by the presumed intention of the transferor of property, and automatic resulting trusts, which arise regardless of the transferors intention whenever he has failed to dispose of the beneficial interest.

What is the resulting trust?

A type of trust that is imposed by law. It returns the beneficial ownership in the trust property back to the settlor. It applies, for example, where: The settlor of an express trust fails to tell the trustees what to do with the trust property (or part of it).

What is an example of a resulting trust?

This may occur, for example, when a person (A) provides the purchase price for property to be legally held by another (B). In this case, there is a presumption that B holds the property on trust for A, although this is subject to the relationship between A and B and the surrounding circumstances.

What is the cause of action for resulting trust?

[1] A resulting trust arises when the legal estate is transferred under such circumstances that the intent appears, or is inferred, that the beneficial interest should not be enjoyed with the legal title. (49 Cal. Jur. 2d, Trusts, 347, p. 186; Fulton v.

06 Resulting Trusts 2025

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