Resulting Trust Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Resulting Trust, written in plain English, along with examples of how it is used.
What is Resulting Trust?
(n) when the court observes that the holder or a person possessing a property by virtue on an agreement or implied circumstances leading to such belief, was holding such property on behalf of the intended owner such an implied holding or trust of a property is known as resulting trust .
History and Meaning of Resulting Trust
Resulting trust is a legal concept that refers to a situation where a person holds property that is intended to belong to someone else. If the court finds that the holder of the property was holding it on behalf of the intended owner, a resulting trust will be imposed. The concept came about as a way to ensure that property is rightfully returned to its intended owner.
The concept of resulting trust originated in the English court system and has been adopted by many other common law jurisdictions around the world. It is seen as an important tool for ensuring that property rights are protected and respected.
Examples of Resulting Trust
- A father purchases a home for his son, but the title is put in the father's name. After the father's death, the court may impose a resulting trust to transfer the ownership of the home to the son.
- A business partner holds assets that were intended for the partnership but are in their own name. A resulting trust may be imposed to ensure that the assets are transferred to the partnership.
- A couple separates and one partner retains possession of assets that were meant to be shared. A resulting trust may be imposed to ensure that the assets are divided equally.
Legal Terms Similar to Resulting Trust
- Constructive trust: similar to resulting trust, but arises from a breach of duty or wrongful conduct by the person holding the property.
- Express trust: a trust that is expressly created by the owner of the property.
- Implied trust: a trust that is created through the actions of the parties involved, rather than being expressly stated.