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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
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.
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.

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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.