What is the difference between a constructive trust and a resulting trust?
Also asked, what are resulting and constructive trusts?
Similarly, 'constructive trusts' are trusts that may exist even though an express trust has not been expressly created. A resulting trust arises essentially where property is transferred back to someone who is implied to have held the property on trust for the benefit of another.
Furthermore, what is a common intention constructive trust? A common intention constructive trust is based on the assertion that the parties had a common intention for assets to be held for their equal benefit, regardless of the legal ownership of those assets.
Likewise, people ask, how do you prove a constructive trust?
Generally, the court will consider whether the circumstances warrant the imposition of a constructive trust.
The three elements needed to prove common intention are:
- There must be a domestic relationship.
- There must be a common intention.
- The detriment caused to the plaintiff is a real detriment.
What is a resulting trust in equity?
Resulting trusts in English law are trusts created where property is not properly disposed of. Automatic resulting trusts arise from a "gap" in the equitable title of property. The equitable maxim "equity abhors a vacuum" is followed: it is against principle for a piece of property to have no owner.