Presumed resulting trusts arise when the facts are unknown regarding the ownership of property. There are three types of presumed resulting trusts: 1) voluntary conveyances to strangers, where property transferred without consideration results in a trust for the transferor, 2) presumption in favor of the purchaser, where property purchased in another's name results in a trust for the purchaser, and 3) presumption of advancement, where a voluntary conveyance to a spouse or child results in the property belonging to the spouse or child absolutely unless rebutted. The presumptions can be rebutted by evidence showing a different intention for the ownership of the property.
A Critique of the Proposed National Education Policy Reform
Presumed Resulting Trust Explained
1. PRESUMED RESULTING TRUST
Presumptionof resultingtrustariseswhenthe
fact isnot known,If itis knownthen
presumptionwill be secondary.
PRT can be explainedunderthree headings.
a) Voluntaryconveyances/transferto
strangers
b) Presumptioninfavourof purchaser
c) Presumptionof advancement.
Voluntary conveyancesto strangers
The rule:Voluntarytransferof the legal title
to property.Equitable title doesnotfollow
the legal title butremains withthe settlor.
The situation: Propertyistransferredforno
considerationtoastranger( a personwhois
not a wife orchildto the transferor).
Eg : Brad transferredahouse toEllen
gratuitously.A resultingtrustispresumedin
favourof Brad.
HODGSON V MARKS (1971) Ch 892
Mrs Hodgsona widowownerof a house.
Mr. Evan washer lodger.He gainedhertrust
and affection.Supervise the investmentof her
property.
She transferredahouse to Mr. Evan underan
oral agreementthatshe wouldcontinuetobe
the beneficialowner.
Mr. Evan wasregisteredasanabsolute owner
of the house andhe soldit to Mr. Mark
Held: Mr. Evan heldthe house uponresulting
trust forher.
Re Vinogradoff(1935) WN68
Mrs. Vinogradoff in1926 gratuitously
transferredasum of £800 (war loan) intojoint
name of herself andherinfantgranddaughter
Laura Jackson.
Issue:whetherthe stock,onMrs V’sdeath,
ownedbyherestate or her granddaughter
H: heldon resultingtrust.The granddaughter
was a strangerto the grandmotherdue to the
definitionof the wordstranger.
Presumptionin favour ofpurchaser
Where a purchasertakesconveyance inthe
name of thirdparty.
There isnothingto indicate anintentionon
hispart of nottaking the beneficial interest
for himself.
There is a presumption thathe intendedto
obtainthe beneficial interestforhimself.
Eg: Where A purchasespropertywhetherreal
or personal inthe name of B .
B is presumedtoholdthe propertyon
resultingtrustforA.
The equitable titleresultstoA,whoprovides
the moneyforthe purchase UNLESS, B can
rebutthe presumption.
Dyer v Dyer
“The clearresultof all caseswithoutsingle
exceptionisthatthe trustof legal estate
takeninthe name of the purchaser or inthe
name of others resultsto the name who
advances the purchase money.”
Extensionof the Principle in Dyer v Dyer
RE HOWES
The principlesappliesequallytopure
personalty.
SAVAGEv. DUNNIGHAM[1974] Ch 181 : The
purchase moneydoesnotinclude rentand
2. accordinglythe sharingof the rent didnot
establisharesultingtrustinfavourof the
plaintiff
BULL V BULL (1955) 1 QB 244
Mother andson jointlypurchasedahouse
conveyedinthe sole name of the son.
Whenthe son got married,the mother
occupies2 roomsand the son & wife occupy
the rest of the house.
Differencesarouse andthe sonbroughtan
actionfor the possessionof the house.
Court : The son as legal ownerheldthe house
for himself andforhismother.
PETIT V PETIT [1970] AC 777 at 814
Lord Browne Wilkinson:
“Under a ResultingTrustthe existence of the
trust isestablishedonce andforall at the date
on whichthe propertyisacquired.”
Eg:
Brad & Ellenbroughta house the cost isRM
100,000. Brad paysRM 40,000 and Allenpays
RM 60,000. Thishouse isregisteredinAllen’s
name.
Brad will be equallyentitledto40%
Ellenwill be equallyentitledto60%
GOH KOON SUANV HENG GEK KIAU
H: The general rule isthatwhenpropertyis
transferredintothe name of anotherparty
there isa resultingtrustinfavourof the
personwhoprovidedthe purchase money.
This presumptionmaybe rebutted:
1. by evidence thatthe purchaserintendedto
benefitsuchotherperson;and
2. by the relationshipbetweenthe purchaser
and suchother person,
i.e.if suchotherpersonwas the lawful wifeor
childor some persontowhomthe purchaser
stoodin locoparentis.
Presumptionof Advancement.
A voluntaryconveyance ismade tothe wife
or childof the donoror to a personto whom
he standsin locoparentis( a persontaking
himself the dutyof achild) the presumptionis
that the giftwas intended.
a) Husband & wife
RE EYKYN’STRUST (1877) 6 Ch 115
Held:“where ahusbandtransfermoneyor
otherpropertyintothe name of the wife only,
thenthe presumptionisthat,itisintendedas
a giftor advancementtothe wife absolutely.”
Tinker v. Tinker [1970] 2 WLR 331
The husbandgot himself agarage business.
Later he boughta house butputit in hiswife’s
name.A shortwhile later,the marriage
ended.
A dispute arose asto whomthe house
belonged.
The husbandledevidence toshow thathe
had actedon hissolicitors’advice toputthe
house inhiswife’sname sothathiscreditors
wouldnotbe able to reach itin the eventthat
hisgarage businessfailed.
Held: The propertybelongedabsolutelytohis
wife.
Lew Pa Leong
The plaintiff andthe defendantwere husband
and wife andthe subjectpropertywas
registeredinthe defendantwife’sname.
The plaintiff paidforthe subjectproperty
whereasthe defendantdidnotpayanything
for it,and that there wasa commonintention
betweenhimandhiswife thatshe should
holda half share in the subjectpropertyin
trust forhim.
3. The wife claimedthatshe wasboththe owner
at lawand in equityof the subjectproperty.
Court of Appeal held:
The plaintiff must,inordertoestablishhis
case againstthe defendant,relyonthe true
purpose forregisteringthe subjectpropertyin
hiswife’sname.
That purpose wasto showthe worldat large
includinghispotential creditorsthatthe
subjectpropertywasnothis.
Hence he can not claimedthat halfof the
property belongedto him.
Presumptionofadvancement applied.
b) Father and Child
BennetvBennet(1879) 10 ChD474;
Held:“The fatherof a childisunderthat
obligationformthe mere factof hisbeingthe
father,andtherefore noevidence isnecessary
to showthe obligationtoprovide forhischild.
In the case of a fatheryou onlyhave toprove
that he is the fatherand whenyouhave done
that obligationatonce arises”
c) Other relationships
Anygiftfrom a motherto a child,from
grandmother,aunt, unclesandfromfatherto
illegitimatechild:
there isno presumptionof advancementbut
resultingtrust.
Quere : motherand child
Two views:
1) The positionasbetweenmotherandsonor
motherand daughterislessclear.
2) In the moderncontext,the presumption
shouldnow applytogiftsmade by motherto
child.
Presumptionsapplies.
Re Cameron ( deceased) [1999] 3 WLR 394 at
409;
Held:“bothparentsshouldnowadaysbe
takento be in loco parentis UNLESS the
contrary isproved.
Rebuttal of PresumptionofAdvancement.
The donor mustshow that the giftwas not
intended.
Evidence producedtorebutanintentionto
make giftsmustnot disclose anillegal
purposes.