Resulting Trusts

Question 1

When do Resulting Trusts arise?

Answer 1

By implication of law

Question 2

Who benefit’s from a resulting trust?

Answer 2

The settlor or their successors in interest

Question 3

In which two circumstances will the Resulting Trust arise?

Answer 3

Failed express trust

Purchase-money resulting trust

Question 4

In which circumstances might an express trust fail?

Answer 4

Settlor attempts to create an express trust but fails

OR

There is no remainder provision in the trust’s excess

Question 5

What are the three fact patterns where you should think about a purchase-money resulting trust being creates?

Answer 5

You make a gift to another person

You make a loan to another person

You pay money to a seller for property, the title transfers to someone else

Question 6

If you make a gift to another person, when will that be assumed to be an outright gift rather than a resulting trust?

Answer 6

Grantee is a close relative of the grantor

Question 7

When is a loan to another person not considered a resulting trust?

Answer 7

When you expect to get your money back

Question 8

For the transfer of property, when you pay the seller but the legal title goes to someone else, in which circumstances is a resulting trust presumed?

Answer 8

If the payor and grantee are not close relatives a PMRT is presumed