Implied trusts

Question 1

What is a purchase money case in resulting trust presumptions?

Answer 1

If X purchases a property and puts it in Y’s name then it is presumed that X retains all equitable interest in that property.

Question 2

What is the presumption in voluntary transfer of personalty?

Answer 2

If transfer for free recipient gets legal title A gets equitable interest in property.

Question 3

What is the rule for presumption of gifts?

Answer 3

There is no resulting trust presumed for gift if under a moral obligation (father and son) (husband to wife).

Question 3

What is the presumption of resulting trusts for contribution of purchase price of property?

Answer 3

There is a resulting trust in favour of contributor if they contributed directly to purchase price (not lawyer fees).

Question 4

Will there be a resulting trust in voluntary transfer of land?

Answer 4

No

Question 5

Resulting trusts arise when ?

Answer 5

Courts are looking at intention to benefit another person rather than the intention to create a trust.

Question 6

What is the presumption of advancement ?

Answer 6

Rebuttal to presumption of resulting trust (presumption of a gift).

Question 7

What is a constructive trust ?

Answer 7

Imposed by court on legal owner of an asset to prevent that person ascertaining beneficial ownership of the asset in bad conscience to the prejudice of the true beneficial owner.

Question 8

What is required of constructive trusts ?

Answer 8

1) common intention and reliance

2) sharing of beneficial interest

Question 9

Under constructive trusts I’m acquisition of property there must be common intention to share the home this must be:

Answer 9

• express
• common
• relate to acquisition of a share in beneficial interest

Question 10

What is proprietary estoppel ?

Answer 10

Where trust cannot be implied, courts may rely on this to give an interest in property to stop legal owner denying C rights

Question 11

What are the main elements of proprietary estoppel ?

Answer 11

• Assurance - encouragement creating expectation that party has an interest in the property.
• detriment - acted in detriment by spending money on property
• Reliance

Question 12

How to identify difference between resulting trust/ constructive and promissory estoppel ?

Answer 12

Resulting trust - contributed to purchase price

Constructive trust - Common intention

Promissory estoppel - Assurance + reliance + Detriment