Resulting Trusts

Basic Concepts Implied by conduct (rather than words). Who benefits? Goal = do what settlor would have done had settlor thought about it Who benefits? Settlor, or If settlor is dead, settlor’s successors in interest Not governed by Trust Code as not a real trust § 111.003(1)

Situations where resulting trusts arise 1. Express trust property excessive and trust instrument does not provide instructions. “implied reversionary interest”

Situations where resulting trusts arise 2. Failure of express trust Settlor attempts to create a trust (conveys legal title to the trustee) but the attempt fails. Thus, settlor still has the property. Examples “To Natasha Romanoff, in trust” and there is no actual trust. Beneficiaries described as, “my friends.”

Situations where resulting trusts arise 3. Purchase-money resulting trust Seller $ title Buyer Title Holder Donor Donee Creditor Debtor B of PMRT T of PMRT