Trust 8 - Resulting Trusts

Question 1

What are resulting trusts?

Answer 1

Arise where a legal owner has transferred ownership to a 3rd party but, equity recognises that they should retain/regain beneficial interest (normally failed trust)

Question 2

What 2 categories of resulting trusts are there?

Answer 2

1. Automatic:
2. Presumed:

Question 3

What is an automatic resulting trust?

Answer 3

Default trusts that arise when transfer on trust fails, either wholly or partly - trustees hold property on trust for settlor

Question 4

What is a presumed resulting trust?

Answer 4

A person make a gratuitous transfer of property to a 3rd party, equity raises presumption of a resulting trust - this can be rebutted by evidence that transferor did not intend property to held on trust for them

Question 5

What if A and B buy something in unequal shares?

Answer 5

Resulting trust that the asset is held in unequal shares too.

Question 6

What if A and B pay in equal shares for land as an investment not family home) that is registered in B’s sole name?

Answer 6

B holds half of property on resulting trust for A

Question 7

When is a gratuitous transfer assumed to be a gift?

Answer 7

• Husband to wife (inc made during engagement)
• parent to child
• loco parentis to child