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Resulting Trust: A Comprehensive Guide to Its Legal Implications
Definition & Meaning
A resulting trust is a legal arrangement that occurs when one person holds the legal title to a property, but the equitable title " or the right to benefit from that property " is intended to belong to another person, typically the settlor. This type of trust is established by law to prevent unjust enrichment, meaning that it ensures that someone does not unfairly benefit at the expense of another. Resulting trusts are recognized by courts and are based on the actual intent of the parties involved, often inferred from the circumstances of their agreement.
Table of content
Legal Use & context
Resulting trusts are commonly used in civil law, particularly in property disputes and trust law. They can arise in various situations, such as when a property is transferred without a clear intention of the parties involved or when funds are provided for a specific purpose but are not used as intended. Users may find legal forms related to creating or contesting resulting trusts on platforms like US Legal Forms, which offer templates drafted by attorneys to assist with the necessary legal procedures.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: If a parent transfers a property to their child but intends for the child to hold it for the parent's benefit, a court may impose a resulting trust to ensure the parent can benefit from the property.
Example 2: A person gives money to a friend to buy a house, expecting to live in it together. If the friend buys the house solely in their name, a resulting trust may be established to reflect the original intent of the arrangement. (hypothetical example)
State-by-state differences
Examples of state differences (not exhaustive):
State
Key Differences
California
Resulting trusts are recognized and often used in family law cases.
New York
Courts may impose resulting trusts in cases of implied intent more strictly.
Texas
Resulting trusts can be established based on clear evidence of intent.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Key Differences
Express Trust
A trust explicitly created by the settlor's words or actions.
Unlike resulting trusts, express trusts are clearly defined and intentional.
Constructive Trust
A trust imposed by a court to prevent unjust enrichment.
Constructive trusts are often imposed due to wrongdoing, while resulting trusts are based on intent.
Common misunderstandings
What to do if this term applies to you
If you believe a resulting trust applies to your situation, consider the following steps:
Gather any documentation related to the property or agreement.
Consult with a legal professional to understand your rights and options.
Explore US Legal Forms for templates that may help you draft necessary documents or agreements.
If the situation is complex, legal representation may be beneficial.
Find the legal form that fits your case
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