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resulting trust


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A trust that arises by operation of law. It is a form of implied trust. A distinction has often been made between automatic resulting trusts and presumed intention resulting trusts, although many leading commentators have now abandoned this terminology. There are a number of situations that will give rise to a resulting trust: where a trust fails to dispose of the entire beneficial interest, the trust property that is undisposed of will “result” back to the settlor (Re Vandervell's Trusts [1971] AC 912 (CA); where there is a voluntary conveyance of property to a third party, there will be a rebuttable presumption of a resulting trust (Hodgson v Marks [1971] Ch 892); where the purchase money for property is paid by A and B and legal title to the property is held in B's name alone, there will be a presumption that B holds the property on trust for himself and A in beneficial shares equal to the proportion of their contribution.In addition to the well-established circumstances in which a resulting trust will arise, there has been considerable support for the proposition that quistclose trusts are a form of resulting trust, although this analysis is by no means universally accepted. The courts have sometimes unhelpfully used the terminology of constructive trusts and resulting trusts interchangeably (Gissing v Gissing [1971] AC 886 (HL).

where a trust fails to dispose of the entire beneficial interest, the trust property that is undisposed of will “result” back to the settlor (Re Vandervell's Trusts [1971] AC 912 (CA);

where there is a voluntary conveyance of property to a third party, there will be a rebuttable presumption of a resulting trust (Hodgson v Marks [1971] Ch 892);

where the purchase money for property is paid by A and B and legal title to the property is held in B's name alone, there will be a presumption that B holds the property on trust for himself and A in beneficial shares equal to the proportion of their contribution.

Subjects: Law.


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