Resulting Trust

Question 1

Presumption of resulting trusts

Answer 1

1. Voluntary transfer of personalty (except principle of advancement)
2. Voluntary transfer of land: S60(3) of LPA 1925 is interpreted as no presumption in transfer of land. Cases may suggest otherwise but no automatic presumption (there must be evidence)
3. Purchase money: directly contribute to purchase price (not other fee e.g. legal fee) at the time of purchase

Question 2

Presumption of advancement (gift)

Answer 2

applies when equity regards transferor as being under moral obligation to provide for transferee, including:
1. father to child (either minor or adult)
2. Person in loco parentis (a guardian taken on financial support for a child under 18)
3. husband to wife
4. by fiance (male) to fiancee (female) as long as the couple subsequent marry

Question 3

Rebutting the presumptions

Answer 3

1. Is there evidence of transferor’s intention ?
2. Is it admissible?
   - Transferor can only use evidence on his intention before or at the time of transfer.
   - Transferee can use evidence of transferor’s intention both before and after transfer.

Question 4

When does automatic resulting trust arise?

Answer 4

1. Settlor transfers property trustees on trust
2. Express Trust fails: void or does not exhaust the trust fund:
   - No beneficiary to attain vested interest (e.g. A dies before 25)
   - lack certainty of objects (e.g. my best friends)
   - uncertain beneficial interest (e.g. decent amount)
   - trust offends rules against perpetuity
   - trust offends beneficiary principle

Question 5

Do any formalities attached to resulting trust?

Answer 5

No, implied trust requires no formalities