Is intention appropriate in resulting trust?
Resulting trusts are not imposed as a response to the conduct of the trustee, but to give effect to the implied intentions of the owner. Instead, he will hold it on trust for the transferor. The equitable interests is said to ‘result back’ to the transferor, thus ensuring that he retains his interest in the property.
What is the purpose of resulting trusts?
An implicit trust created by operation of law, either by presumption or automatically. This is because ‘the person in whose favour the trust arises is the person who provided the property or equitable interest vested in the person bound by the trust’.
How do you prove a resulting trust?
To prove a resulting trust, a victim must prove four elements by clear, strong, and convincing evidence. Clear, strong, and convincing evidence is a higher burden of proof than most civil cases require.
What is a resulting trust claim?
A claim based on a resulting trust means that the property is in your partner’s name but is really your property. This might be found where: you gave property to your partner that they didn’t pay for, or. property was purchased in only your partner’s name but you contributed to buying the property.
What is the role of intention in trusts?
“Certainty of intention” means that it must be clear that the donor or testator wishes to create a trust; this is not dependent on any particular language used, and a trust can be created without the word “trust” being used, or even the donor knowing he is creating a trust.
What is a common intention constructive trust?
A constructive trust is founded upon a common intention that can either be expressed or inferred but cannot be based upon an intention that the parties never in fact had. In a constructive trust, once a common intention has been found between the parties, they will now be entitled to the intended property.
What are the two forms of implied trust?
There are two main types of implied trust: the resulting trust and the constructive trust.
How many types of resulting trust are there?
According to Re Vandervell’s Trusts (no 2) [1974] Ch 269 There are two categories of resulting trusts: Automatic resulting trust. Presumed resulting trust.
What is the certainty of intention?
What are the elements of constructive trust?
“The imposition of a constructive trust requires: (1) the existence of res (property or some interest in property); (2) the right of the complaining party to that res; and (3) some wrongful acquisition or detention of the res by another party who is not entitled to it.” See Burlesci v.
What is the difference between resulting trust and constructive trust?
A resulting trust is created when title to a property is in the name of a party that did not provide any value for the property, and that party is then required to return the property to the true owner 3. A constructive trust is imposed when there has been unjust enrichment, regardless of the intention of the parties.
What types of implied trusts are there?
What is the presumption of common intention in a trust?
This is what is known as a presumed resulting trust. The presumption of a common intention, which may be rebutted, arises by law; not on the facts. Now let as consider the implications that this has on the cohabitee who has not made a direct contribution to payment of the property.
What is the difference between common intention and constructive trust?
In a similar way there is a close, if not invisible link, between an inferred common intention and the detriment where a constructive trust is based upon financial contribution. The distinction is that a resulting trust is based upon a presumed intention at the time of acquisition but a constructive trust can arise afterwards.
What is the outcome of a resulting trust?
If we have evidence that proves that a gift was intended, then there is no resulting trust and it does not matter which presumption applied initially. The outcome is based on proof of intention and not on any presumption of intention.
How does case law work in a resulting trust?
Much of the case law is instead based on Megarry’s classification. Resulting trusts work on a principle of “common intention”. This is the idea that a resulting trust is a mix of the settlor’s intention, and the trustee’s knowledge that he is not intended to be the beneficiary.
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