Resulting Trusts

Question 1

When is a constructive trust imposed?

Answer 1

Arise to correct unconscionability e.g. imposed over profits made in breach of fiduciary duty or to perfect an imperfect gift.

Question 2

When is a presumed resulting trust imposed?

Answer 2

In response to a transfer of legal title. Can arise where a person gratuitously transfers property to another or a person pays all/part of purchase price for asset.

Question 3

When is an automatic resulting trust imposed?

Answer 3

Occurs where a transfer fails wholly or partly.