Resulting trusts-trusts laws and accounts, Financial Accounting

Resulting trusts

Resulting trusts occur where equity regards the property which is held by a trustee as belonging in equity to the person who transferred it to, or caused it to be vested in, the trustee.
 
They may arise in four situations -
 
1. Purchase of property by one person in the name of another:

  1. Where a person buys land or pure personalty and has it conveyed into the name of another, or into the joint names of himself and another, there is a presumption that the property is held on trust for the person supplying the purchase money;
  2. If two people advance money to purchase property, but the conveyance is taken in the name of one only, the other takes a beneficial interest in the property in proportion to the money advanced by him.

 

In some cases the relationship between the two parties will raise a presumption of advancement which displaces the presumption of a resulting trust i.e where the person supplying the purchase money is under an obligation to maintain the other e.g. a father or a husband.
 
2. Voluntary transfer of personal property by the owner into the name of another or into their joint names (e.g Re Vinograndoff).

3. Failure to exhaust the beneficial interest. The settlor fails to dispose of the whole of the beneficial interest in the trust fund.  The undisposed of part is held by the trustees on resulting trust for the settlor or his estate (Re Abbots Fund).

 4. Where a private express trust fails for uncertainty of objects or for non-compliance with statutory formalities there will be a resulting trust in favour of the settlor.

Posted Date: 12/13/2012 6:09:08 AM | Location : United States







Related Discussions:- Resulting trusts-trusts laws and accounts, Assignment Help, Ask Question on Resulting trusts-trusts laws and accounts, Get Answer, Expert's Help, Resulting trusts-trusts laws and accounts Discussions

Write discussion on Resulting trusts-trusts laws and accounts
Your posts are moderated
Related Questions
how should i treat items in the additional information

DO ACCOUNTANTS EVER REALLY MAKE IMPORTANT DESIONS?

For a capital lease the lessee records the lease payments as rent expense, but for an operating lease the lessee reports the lease payments as depreciation expense For an operating

A HEALTH SAVINGS ACCOUNT AT FRONTLINE PR Susan Berry just returned from a national conference on compensation and benefits where she attended a session on Health Savings Accou

Holding company with a direct shareholding in sub-subsidiary company Under this type of structure, both the holding and subsidiary company have some shareholding in the sub-subsi

Task This task is designed to further develop your critical analysis and research skills related to the tourism or hospitality enterprise you selected for Assignment 1. You are

Q. Determine expected future cash flows? A rights issue will be a smart source of finance to Tirwen plc as it will reduce the gearing of the company. The current debt/equity ra

An item of plant was purchased for $100,000 on 1 January 2009. At that time its estimated residual value was $5,000. At 31 December 2009 prices, the residual value was estimated at

I need to know how to do a problem and whether I am missing information.

A) Suppose you have two stocks (A and B) in your portfolio, worth $400,000 and $600,000 respectively. The annual volatility is 0.30 and 0.35 respectively. The correlation between t