Definition

Noun: A resulting trust is an equitable remedy imposed by a court. It arises when property is transferred under circumstances that suggest the transferor did not intend for the transferee to have the full beneficial ownership of that property. The court "results" the beneficial interest back to the transferor (or their estate) to fulfill the presumed intention of the parties.

Usage

A resulting trust is not explicitly created by a written document or agreement. Instead, it is inferred by law based on the facts of a transaction, typically to prevent unjust enrichment. * The court imposed a resulting trust on the house because, despite the title being in his brother's name, the claimant had provided all the purchase money. * In the absence of evidence of a gift, the transfer of the shares gave rise to a resulting trust in favor of the original owner.

Advanced Usage

• Automatic Resulting Trust: This arises when a trust fails or is incomplete. For example, if a settlor transfers property to a trustee for a purpose that fails, a resulting trust automatically arises to return the property to the settlor.
• Presumed Resulting Trust: This is a rebuttable presumption of law. A common example is when A pays the purchase price for property but has it legally titled in B's name. The law presumes A did not intend a gift to B, so B holds the property on a resulting trust for A. This presumption can be rebutted by evidence of a contrary intention (e.g., evidence of a loan or a gift).

Variants and Related Words

• Constructive Trust: A related but distinct equitable remedy imposed by a court to prevent unjust enrichment, regardless of the parties' intentions. Unlike a resulting trust, it is not based on a presumed intention to create a trust.
• Express Trust: A trust that is deliberately and explicitly created by a settlor, usually in a written document. This contrasts with a resulting trust, which is implied by law.

Synonyms

• Implied Trust (This is a broader category that can encompass both resulting and constructive trusts).

Notes on Meaning

The core legal concept is the restitution of property based on a presumed lack of intention to gift. It is a default mechanism in equity to allocate beneficial ownership when the legal title and the financial contribution to an asset do not align, and no gift or loan was intended. It is fundamentally different from an express trust, which is created by conscious design.

Noun

1. a trust created by a court when it is judged that it was the intention of the parties to create a trust