Presumed Resulting Trust

A presumed resulting trust is a type of resulting trust that arises when there is a presumption or inference that the legal owner of property holds it for the benefit of another person. In a presumed resulting trust, the beneficiary must prove that they have a beneficial interest in the property, but they do not need to prove an express agreement or intention to create a trust.

A presumed resulting trust may arise in a number of situations, including:
  1. Where a person pays for property but puts the title in someone else's name. In such a case, the presumption is that the legal owner holds the property on trust for the person who paid for it.
  2. Where a person transfers property to someone else without receiving adequate consideration, or without intending to make a gift. In such a case, the presumption is that the legal owner holds the property on trust for the person who transferred it.
  3. Where a person contributes to the purchase or improvement of property that is held in joint names, but their contribution is not reflected in the legal title. In such a case, the presumption is that the legal owners hold the property on trust for all the contributors, in proportion to their contributions.

In order to establish a presumed resulting trust, the beneficiary must provide evidence to support the presumption, which may include evidence of contributions, financial transactions, or other relevant circumstances.

The presumption of a resulting trust is a rebuttable presumption, which means that the legal owner may be able to provide evidence to rebut the presumption and establish that they hold the property for their own benefit.
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