What are the three situations when resulting trusts shall occur?
1.) Where a transfer on trust wholly or partially fails but the property has been transferred to the trustee
2.) Where a person gratuitously transfers property to another person
3.) Where a person pays all or part of the purchase price of an asset
When will an automatic resulting trust occur?
When there has been some sort of failure in the transfer on trust
When will a trust fail and NOT become an automatic resulting trust?
1.) Lack of constitution (legal title has not passed to the trustee)
2.) A self-declaration of trust that fails due to either uncertainty of objects or subject matter
3.) Testamentary trust that fails due to either uncertainty of objects or subject matter is void
4.) If property is left to a person in a will, and it is concluded that there is insufficient certainty as to whether they are intended to be a trustee, effect shall be a gift to that individual
When will a presumed resulting trust arise?
- Where a transfer is gratuitous but there is no evidence that the transferor intended the recipient to receive the property as a gift
- A person pays all or part
