resulting trusts no 2 Flashcards
according to Re Vandervell’s Trusts what are the two categories of resulting trusts?
automatic resulting trusts
presumed resulting trust
when will an automatic resulting trust arise?
where the settlor transfers property to the intended trustee but the trust has failed for some reason
- the trustee holds the legal title of the property on trust
- the beneficial or equitable ownership is retained by the settlor
when do presumed resulting trusts arise?
either from voluntary transfer of the legal estate or by contribution to the purchase price
what is presumed under presumed resulting trusts? and what happens in such circumstances?
that the person did not intend to make a gift of the property or money unless there is a clear intention that they did so intend.
- a resulting trust arises and the transferor or the person making the contribution retains or takes a share in the beneficial interest
what is the presumption of advancement?
where in some relationships there is a counter presumption that a gift was intended
what are the two requirements where a presumption of resulting trust arises?
voluntary conveyance = where a person transfers property to a third party who does not provide any consideration
contribution to purchase price
what has the court held in terms of contribution to purchase price where it comes from a cohabiting couple?
where the property is in joint names there is an intention to hold the property jointly in equity and thus there is no room for a presumption of resulting trust
what can rebut the presumption of resulting trusts?
if there is evidence that a gift was intended
what happens if the presumption of a resulting trust is rebutted?
the transferee will be absolutely entitled to the property and the transferor will not be entitled
to any share in the beneficial ownership
what might rebut the presumption of advancement?
if there is evidence that no gift was intended `
