Trusts - 2 - Resulting And Constructive Trusts

Front 1

What are the 5 circumstances which give rise to an automatic resulting trust?

Back 1

1. Uncertainty of objects
2. Failure of a contingency
3. Failure to dispose of whole beneficial interest
4. Surplus funds after a valid trust has completed its purpose
5. Money given for a stated purpose which can no longer be carried out

Front 2

Equity abhors a vacuum.

The beneficial interest must be held by someone and will be held on resulting trust for the settlor as a last resort.

What is the relevant case?

Back 2

Vandervell v IRC (1967)

Front 3

An automatic resulting trust can arise where there is 'failure of a contingency'

What is the relevant case?

Back 3

Re: Ames Settlement (1946)

Front 4

An automatic resulting trust can arise where there is a 'failure to dispose of the whole beneficial interest'

Give a hypothetical example.

Back 4

A leaves shares to B for the rest of B's lifetime but who gets the property when B dies?

The property will result back to A's estate.

Front 5

An automatic resulting trust can arise where there is a 'failure to dispose of the whole beneficial interest'

Name a relevant case.

Back 5

Re: West (1900)

Front 6

A resulting trust will arise where a valid trust has complete its purpose but has a surplus of funds.

Name a relevant case.

Back 6

Re: West Sussex Constabulary (1976)

Front 7

In Re: West Sussex Constabulary what were the 4 sources of surplus funds and what happened to them?

Back 7

(i) members subscriptions
(ii) receipts from raffles & competititons
(iii) collection boxes
(iv) donations and legacies

1-3 passed to the crown as bona vacantia but 4 was held on resulting trust for the donors

Front 8

Re: Printers and Transferrers' Amalgamated Trades Protection Society (1899)

Back 8

When the association ceased to exist the property held by it was divided between existing members in proportion to their contributions.

However, this could only work because the contributors were ascertainable.

Front 9

A resulting trust can arise where money is given for a stated purpose which cannot be carried out.

What is the key case?

Back 9

Barclays Bank v Quistclose Investments (1970)

Front 10

Under what two circumstances is there a 'presumed resulting trust'?

Back 10

1. The voluntary conveyance of property to another

2. The purchase of property in the name of another

Front 11

Equity presumes a bargain and never a gift

What is the main case?

Back 11

Re: Vinogradoff (1935)

Front 12

A presumed resulting trust can a rise where a property is transferred without valuable consideration.

What is the case?

Back 12

Re: Vinogradoff (1935)

Front 13

s60(3) Law of Property Act 1925

Back 13

In a voluntary conveyance a resulting trust to the grantor shall not be implied but the case of Hodgson v Marks says basic equitable principles can override

Front 14

3 ways to rebut the presumption of a resulting trust

Back 14

1. Presumption of advancement
2. Loan
3. Gift

Front 15

Name a case where the presumption of a resulting trust was rebutted by arguing that the transfer was an intended gift

Back 15

Fowkes v Pascoe (1875)

Front 16

Gascoigne v Gascoigne (1918)

Back 16

Facts: Mr G bought a property in his wife's name in order to defraud his creditors. Mr G sought a declaration that Mrs G held the property on trust for him and she argued the 'presumption of advancement'

Held: The person trying to rebut the presumption cannot rely upon evidence of an illegal purpose.

He who seeks equity must come with clean hands.

Front 17

Tinsley v Milligan (1993)

Back 17

Facts: T&M were partners and purchased a property together. M was on benefits and to avoid losing them the property was bought in T's name only.

The relationship broke down and M claimed a beneficial share of the property from T based on her contribution to the purchase price.

House of Lords held that M did not need to rely on her illegal purpose to support the presumption of a resulting trust.

Front 18

Tribe v Tribe (1996)

Back 18

Facts: Man tried to avoid debots who had threatened litigation by transferring shares to his son. Litigation never occurred and father tried to reclaim the shares - the son relied on the presumption of advancement.

Held: Father could not rebut the presumption without relying on the evidence of his illegal purpose in the transfer.

Front 19

Contributions that are not financial can create an interest in the home.

What is the relevant case?

Back 19

Gissing v Gissing (1971)

Front 20

What are the 4 requirements for the course to find an express common intention trust?

Back 20

1. The common intention must be express
2. The intention must be common
3. The common intention must relate ot the acquisition of a share in the beneficial interest of the family home
4. Detrimental reliance

Front 21

For an 'express common intention trust' the intention must be common to both parties.

What is the relevant case?

Back 21

Springette v DeFoe (1992)

Front 22

Lloyds Bank v Rossett (1991)

Back 22

Facts: A husband and wife purchased a semi-derelict property with the funds provided by the husband's family trust. Title to the property was put in his name only.

Renovation work was commenced with the wife doing some work on the property. Husband took out an overdraft facility for the renovation work which he then defaulted upon.

When possession proceedings began the wife claimed an interest in the property.

Held: The wife's activities in respect of the property were not sufficient evidence on which an inference of common intention could be made. In the absence of an express intention, the husband held the property for his own use and benefit.

Front 23

In the absence of an expressed common intention as to the beneficial ownership of a property, the common intention can only be inferred by direct financial contribution to the acquisition of the property.

Case?

Back 23

Lloyds Bank v Rossett (1991)

Front 24

Curley v Parkes (2004)

Back 24

Facts: C claimed a beneficial interest in a property which was in D's sole name. Initial payment was made by D and the mortage was in D's name.

After the property was acquired, C made a payment of £9k to D which he alleged was to cover some acquisition costs.

Held: For a trust to arise the payments towards the purchase price had to be made at the time of the purchase of the property.

Front 25

A beneficial interest under a resulting trust can only arise where the payments towards the purchase price are made at the time the property was acquired.

Back 25

Curley v Parkes (2004)

Front 26

What are the two categories of common intention constructive trusts set out in Lloyds Bank v Rossett?

Back 26

1. Express agreement + detrimental reliance

2. Conduct demonstrating common intention - doubtful anything less than financial contributions will do

Front 27

Renovating the home as detrimental reliance?

Back 27

Eves v Eves (1975)

Front 28

Bills, housekeeping and bringing up children as detrimental reliance?

Back 28

Grant v Edwards (1986)

Front 29

Bringing up children & supporting partner in business ventures as detrimental reliance?

Back 29

Hammond v Mitchell (1991)

Front 30

When quantifying a share in a constructive trust, which case says we should look at the whole course of dealings?

Back 30

Oxley v Hiscock (2004)

Front 31

Where a married couple set up home together and the relationship i) breaks down or ii) one party becomes bankrupt, the dispute over respective interests in the family home will be resolved by reference to which statute?

Back 31

Matrimonial Causes Act 1973

Front 32

An express trust of land is subject to the formalities set out in which statute?

Back 32

s53(1)(b) Law of Property Act 1925

Front 33

Facts of Eves v Eves (1975)

Back 33

Man told his partner that their joint home should be acquired in his name only as she was under the age of 21

Front 34

Facts of Grant v Edwards (1986)

Back 34

Man told his partner that their joint home should be transferred into his name only to avoid prejudicing her ongoing divorce proceedings

Front 35

Bannister v Bannister (1948)

Back 35

A woman transferred land at less than the market price to her brother in law on the understanding that she could continue to live there rent free for the rest of her life. He then tried to evict her

Held: That there was a constructive trust that enabled her to use the beneficial life interest as promised.

Front 36

If no discussion occurs, there can be no scope for a constructive trust.

What is the case?

Back 36

Burns v Burns (1984)

Front 37

If the 'express bargain constructive trust' prescribes the shares the parties are to take, the quantification of the beneficial interest is straightforward.

What is the case?

Back 37

Clough v Killey (1996)

Front 38

For the purposes of finding an implied bargain constructive trust, a direct contribution to the purchase price will allow the courts to find common intention.

What is the case?

Back 38

Oxley v Hiscock (2004)