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Equity & Trusts 70517Topic 12: Resulting Trusts
Equity & Trusts 70517Topic 1 - History and Nature of Equity Topic 2 - Unconscionable Dealing and Undue InfluenceTopic 3 - Introduction to Estoppel/ Proprietary EstoppelTopic 4 - Promissory EstoppelTopic 5 - Equitable Interests/ Equit’l Assignment of PropertyTopic 6 - Equitable Assignment of PropertyTopic 7 - Fiduciary ObligationsTopic 8 - Accessorial Liability for Breach of Fiduciary Duty or TrustTopic 9 - Tracing/ Account of ProfitsTopic 10 - Equitable CompensationTopic 11 - Constructive TrustsTopic 12 - Resulting TrustsTopic 13 - Express TrustsTopic 14 - Duties, Powers, Rights and Liabilities of Trustees; Rights of Beneficiaries
Topic 12 – Resulting TrustsEquity & Trusts 70517RESULTING TRUSTS LECTURE SUMMARY: A. Introduction to Resulting TrustsB. Automatic Resulting TrustsC. Presumed Resulting TrustsD. Quistclose TrustsE. UK DevelopmentsF. Illegality
Topic 12 – Resulting TrustsEquity & Trusts 70517A: INTRODUCTION•Classification of trusts•Express trusts – creator has expressed intention to create trust either in writing or inferred from circumstances.•Resulting trusts – where property disposed of in circumstances in which a provider of property does notintend to benefit recipient: automatic RTs & presumed RTs.•Constructive trusts – imposed by operation of law regardless of intention of parties where ‘unconscionable’ for t/ee to claim beneficial ownership: institutional CTs & remedial CTs.
Topic 12 – Resulting TrustsEquity & Trusts 70517A: INTRODUCTION•.Resulting Trusts are trusts imposed by law in two particular circumstances:1.“Automatic” resulting trusts–when there is a surplus of trust property for the intended purpose, or a failure of that purpose – in other words, incomplete disposition of property. 2.“Presumed” resulting trusts–where contributions have been made to the purchase of property in the name of someone other than the payer, or into joint names but where the payer has contributed more than the share of legal title proportionate to that contribution.
Topic 12 – Resulting TrustsEquity & Trusts 70517A: INTRODUCTIONWestdeutsche Landesbank v Islington LBC  AC 669 per Browne-Wilkinson LJ(A)where A makes a voluntary payment to B or pays (wholly or in part) for the purchase of property which is vested either in B alone or in the joint names of A and B, there is a presumption that A did not intend to make a gift to B: the money or property is held on trust for A (if he is the sole provider of the money) or in the case of a joint purchase by A and B in shares proportionate to their contributions.(B)where A transfers property to B on express trusts, but the trusts declared do not exhaust the whole beneficial interest.