Topic 12 slides - Resulting trusts.pptx - Equity Trusts...

Equity & Trusts 70517
Topic 12:
Resulting Trusts

Equity & Trusts 70517
Topic 1 - History and Nature of Equity
Topic 2 - Unconscionable Dealing and Undue Influence
Topic 3 - Introduction to Estoppel/ Proprietary Estoppel
Topic 4 - Promissory Estoppel
Topic 5 - Equitable Interests/ Equit’l Assignment of Property
Topic 6 - Equitable Assignment of Property
Topic 7 - Fiduciary Obligations
Topic 8 - Accessorial Liability for Breach of Fiduciary Duty or Trust
Topic 9 - Tracing/ Account of Profits
Topic 10 - Equitable Compensation
Topic 11 - Constructive Trusts
Topic 12 - Resulting Trusts
Topic 13 - Express Trusts
Topic 14 - Duties, Powers, Rights and Liabilities of Trustees; Rights of
Beneficiaries

Topic 12 – Resulting Trusts
Equity & Trusts 70517
RESULTING TRUSTS LECTURE SUMMARY:
A. Introduction to Resulting Trusts
B. Automatic Resulting Trusts
C. Presumed Resulting Trusts
D. Quistclose Trusts
E. UK Developments
F. Illegality

Topic 12 – Resulting Trusts
Equity & Trusts 70517
A: INTRODUCTION
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Classification of trusts
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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 not intend 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 Trusts
Equity & Trusts 70517
A: 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 Trusts
Equity & Trusts 70517
A: INTRODUCTION
Westdeutsche Landesbank v Islington LBC [1996] 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.

Topic 12 – Resulting Trusts
Equity & Trusts 70517
A: INTRODUCTION
•.