Resulting trusts
Resulting trusts

The following Property practice note provides comprehensive and up to date legal information covering:

  • Resulting trusts
  • Categorisation of resulting trusts
  • Presumed resulting trusts
  • Voluntary conveyance
  • Purchase in the name of a third party
  • Rebutting the presumption
  • Automatic resulting trusts
  • Invalid declaration of trust
  • Declaration of trust valid but trust fails
  • Incomplete disposal of entire beneficial interest

Resulting trusts represent one of the three types of trust which do not require to be declared or evidenced in writing. The others are constructive and implied trusts, although it is perhaps doubtful whether there is any form of implied trust which is not in fact either a resulting trust or a constructive trust.

Categorisation of resulting trusts

Resulting trusts are either presumed or automatic:

  1. a presumed resulting trust arises:

    1. where there is a voluntary transfer of property to another, or

    2. where title to property is put into the name of someone other than the person who has provided the purchase money or other consideration for the acquisition

  2. an automatic resulting trust arises where the disposing party has failed to dispose of their entire legal and beneficial interest in the property which is the subject of the disposal

Presumed resulting trusts

Voluntary conveyance

The presumption of a rebuttable resulting trust arises on the voluntary transfer of personalty. However, the position is less clear in the case of land, given the terms of section 60(3) of the Law of Property Act 1925 (LPA 1925). There are competing judicial and academic views as to whether that sub-section has abolished the presumption of a resulting trust in relation to land (or indeed whether the presumption existed in the first place; see Professor John Mee (Conveyancer and Property Lawyer, Issue 4, 2012; Resulting

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