Podcast
Questions and Answers
What characterizes a resulting trust?
What characterizes a resulting trust?
In which situation does a resulting trust typically arise?
In which situation does a resulting trust typically arise?
What happens to the property when an express trust fails?
What happens to the property when an express trust fails?
In a purchase-money resulting trust, why is the title held by someone else?
In a purchase-money resulting trust, why is the title held by someone else?
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Who benefits from a resulting trust if the settlor is deceased?
Who benefits from a resulting trust if the settlor is deceased?
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Which of the following is NOT a possible legal explanation for a purchase-money resulting trust?
Which of the following is NOT a possible legal explanation for a purchase-money resulting trust?
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Which aspect of resulting trusts differentiates them from express trusts under the Trust Code?
Which aspect of resulting trusts differentiates them from express trusts under the Trust Code?
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What occurs with property left over after the termination of an express trust?
What occurs with property left over after the termination of an express trust?
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Study Notes
Resulting Trusts: Basic Concepts
- Resulting trusts arise from conduct, not explicit statements. They imply a trust without written or spoken agreement.
- Beneficiaries are unclear; often the settlor or their successors (heirs/beneficiaries of will) benefit.
- Unlike express trusts, resulting trusts aren't governed by the Trust Code; express trusts are governed by the Trust Code.
Situations Giving Rise to Resulting Trusts
- Excessive trust property: If a trust's terms don't specify what happens to remaining assets after a condition is met (e.g., "until X reaches 25"), a reversionary interest, the remaining property, is impliedly returned to the settlor.
- Failed express trusts: If a trust fails to achieve its intended purpose (e.g., insufficient/indefinite beneficiary description), the property reverts to the settlor. The settlor retained control.
- Purchase-money resulting trusts: When someone pays for property, but title is transferred to another party, instead of the payer, a purchase-money resulting trust might be implied. This means the payer intended to hold equitable title to the property.
Possible Explanations for Purchase-Money Resulting Trusts
- Gift: One party (the donor/giver) intended to gift the property to the other.
- Debtor-creditor relationship: The payment was a loan, with an expectation of repayment.
- Purchase-money resulting trust: The payer intended to acquire ownership, but property title was placed unintentionally in someone else's name. This is the legal interpretation of a payment for property where the title doesn't follow the payment.
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Description
This quiz covers the fundamental concepts of resulting trusts, including their origins and key situations that give rise to them. Explore how beneficiaries are determined and understand the implications of excessive trust property and failed express trusts. Dive into the nuances of purchase-money resulting trusts and their legal significance.
