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Principles of creative and resulting trusts.
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The resulting confidence approach will obtain, where it is apparent that the property was purchased as a business venture or investing and not every bit a family domestic for the parties.
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A subsequent trust is founded upon the presumed intention that arises where a soul provides funds for the purchase of property.
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When does the presumption of resulting trust arise?
The presumption of resulting trust can arise when one person pays all or part of the price to purchase assets in someone else’s name. There is an assumption that no gift was intended and that the owner of the assets holds them in trust for the persons who paid for it, in proportion to their contributions, unless it is proved otherwise.
What are the principles of constructive and resulting trusts?
In its exploration of the underlying principles of constructive and resulting trusts, this essay proposes to closely examine several cases which have helped shape, define, and in some cases actually create what we now know as the resulting and constructive trust respectively.
Which is an example of a resulting trust?
For example, if a father hid assets from his creditors by putting them in his child’s name, the presumption of advancement would apply and he would not be able to recover them if his purpose had been achieved. If instead the child hid assets in the father’s name, the presumption of resulting trust would apply and the assets could be recovered.
Is the nature of a trust the same as its consequences?
Moreover, not only the nature but also the consequences of each are crucially different.
Last Update: Oct 2021
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