resulting trusts involve
revisionary interests
revisionary interest - the right to resume ownership of property if and when certain conditions are met**.
what types of resulting trusts
- purchase money resulting trusts
- resulting trusts arising on failure of an express trust
- excess corpus - resulting trusts arising from an incomplete disposition of trust assets
who is the B of a resulting trust
the S and if S dead → then S’s successors become the Bs
when does a resulting trust happen
when S has conveyed property to T under express trust and
- trust is void or unenforceable
- B is dead or cannot be located
- can also apply when CT fails and cy pres doctrine is inapplicable
resulting trust will not be implied where
- Trust instrument specifically or implicitly provides for disposition of trust property but the trust has failed or been completed (so disposition of property cannot be completed)
- S was given consideration for the original transfer in trust
- S created the trust for an illegal purpose -OR-
- Cy pres is applicable in cases of CT
resulting trust in favor of S arises wen
trust purpose is fully satisfied and some trust property remains
purchase money resulting trust (PMRT)
PMRT is presumed when B gives consideration to acquire real or personal property → but with Bs consent, title is taken in name of T
consideration given for PMRT
consideration given by B must be for the purchase of the property
so $$ paid to improve property or taxes paid do not give rise to a trust
when must consideration for PMRT be gien
at or before T takes title
BOF for a PMRT is on
the B to prove by clear and convincing evidence that they supplied the consideration
rebuttable presumption of PMRT
once B proves they gave consideration a resulting trust is presumed but T can rebut by showing that no trust was intended (ie T can show payment was a gift, loan, debt owed to T)
rebuttable presumption of PMRT exception
once B proves they supplied the consideration, a resulting trust is presumed. however, T can rebut by showing that no trust was intended
no trust presumption when:
- parties have close personal relationship so instead of presumed trust, a gift is presumed instead
- when B + T take title for illegal purposes, a trust cannot be presumed
- when transferee obtains title wrongfully, trust cannot be presumed (but a constructive trust can be!)
constructive trusts are
used to prevent unjust enrichment
so not really a trust but rather an equitable remedy to prevent the unjust enrichment resulting from wrongful conduct
how to get a constructive trust
request as a remedy in court action; not automatic remedy → has to be pled and proven thru clear + convincing evidence
