resulting trusts

Question 1

what kind of trust is a resulting trust?

Answer 1

An implied trust - one read in by the courts

Question 2

what can happen under a resulting trust?

Answer 2

the equitable property that has been conveyed to someone else may leap back to you for some reason

Question 3

what does Hodgson v Marks [1971] show that the courts presume about a gift?

Answer 3

equity understands that people do not convey property as a gift to someone who is not close family
if you convey a valuable piece of property to someone who is not close family, it is assumed it is not an outright gift

Question 4

what are the basics of resulting trusts?

Answer 4

• fill gaps in the exploitation of property
• leaps back to original position in the absence of clear info
• equity remains where it was
• equitable title’s location left unclear because of few formalities
• therefore, the default is to assume that equity remains where it was
• effect of this is to give the equity owner another chance to clarify what they meant

Question 5

what are the 2 classic resulting trust situations based on?

Answer 5

Vandervell and Westdeutsche

Question 6

what comes under class A resulting trusts? - Lord Browne-Wilkinson

Answer 6

1. voluntary conveyance (e.g. free gift of valuable property
2. purchase money RT (e.g. difference legal owner vs buyers

Question 7

what comes under class B resulting trusts?

Answer 7

A transfers property on express trusts, but the trusts declared do not exhaust the whole of the beneficial interest

Question 8

why do resulting trusts arise?

Answer 8

some are matters of presumed intention, some are automatic

Question 9

explain A1 - voluntary gift

Answer 9

• a resulting trust is presumed to arise where property in transferred to another person for no consideration in circumstances in which no gift was intended
• the presumption of the resulting trust is based upon the transferor’s presumed intention to recover the transferred wealth
• will apply whether the trust is real or personal

Question 10

explain A2 - purchase resulting trusts

Answer 10

• co purchase of property in other’s name
• Lake v Craddock
• land bought as legal joint tenants for drainage scheme
• legal title moved by survivorship
• held equity is proportionate to the contributions

Question 11

what can the presumptions under purchase resulting trusts be rebutted by?

Answer 11

• statute - s60(3) LPA
• express words - Goodman v Galland [1984]
• evidence - of what donor really intended
• presumptions of advancement

Question 12

explain B - failed gifts/trusts?

Answer 12

• there’s a gap
• drafting error
• trust fails because in whole/part void
• no beneficiaries left - Re Abbott [1900]

Question 13

how are resulting trusts quantified?

Answer 13

• find out how much went in that’s how much comes out
• zero in = zero out - Burns v Burns
• apply presumptions - Dyer v Dyer
• do maths if presumption don’t answer all

Question 14

what are the general resulting trust rules?

Answer 14

• courts dislike giving money to trustees in bankruptcy
• whoever puts up the money becomes the owner in equity

Question 15

what are resulting trusts not applied to?

Answer 15

intimate relationships where about land - Lord Diplock due to Burns v Burns
resulting trusts of land give a gendered result which is a problem