Key points

• a resulting trust is an implied trust;

• resulting trusts are said to give effect to the implied intentions of the owner;

• there are two types of resulting trusts: presumed and automatic;

• a presumed resulting trust is based on the presumed intention of the transferor;

• a presumed resulting trust arises where the purchase money is provided by A or A and B together for the purchase of property in B’s name;

• a presumed resulting trust can be rebutted by evidence that either a gift was intended or because of other circumstances;

• a presumed resulting trust could also be rebutted in some circumstances by the relationship of the parties but this principle has been abolished;

• a presumed resulting trust can be rebutted by evidence of a loan; and

• an automatic resulting trust arises where a trust fails or there is a surplus of funds after the purpose of the trust has been carried out.

Definition of a resulting trust

A resulting trust arises by operation of law and contrasts with an express trust which arises because the settlor has taken the proactive step of creating a trust. The trust arises informally without the need to satisfy formalities such as s.53(1) Law of Property Act 1925.