A trust implied by law that arises when property is transferred but the transferor's intention regarding beneficial ownership is unclear, incomplete, or fails. The law presumes the transferor did not intend to make a gift, so beneficial ownership "results" back to the transferor or their estate despite legal title passing to another.
A resulting trust happens when you transfer property to someone but it's unclear whether you meant it as a gift or for another purpose. If you can't prove you intended a gift, the law assumes you still own it beneficially even though someone else holds legal title.
⏱ When you'll encounter this term
- Disputes over whether a transfer was a gift or loan
- Property put in someone else's name for convenience
- Failed trusts or incomplete trust purposes
- Family property disputes after death
"Mum put the house in my name to avoid probate, but we had no written agreement about whether she was giving it to me or just having me hold it for convenience. When she died, the court found a resulting trust—I held legal title but Mum's estate owned it beneficially, so it had to be distributed according to her will."
⚖️ Compare: Resulting Trust vs Express Trust
Implied by law when intention unclear. Not deliberately created. Arises automatically from circumstances.
Intentionally created with clear terms. Written trust document. All parties understand the arrangement.
💡 Did you know?
Resulting trusts are based on the presumption that people don't usually give away property without intending to. If you transfer your house to your child without clear evidence of a gift, the law may presume you meant them to hold it in trust for you.