Automatic Resulting Trust vs. Presumed Resulting Trust

Attribute	Automatic Resulting Trust	Presumed Resulting Trust
Creation	Arises automatically by operation of law	Arises based on the intention of the parties
Proof	No need to prove intention to create trust	Need to prove intention to create trust
Rebuttal	Difficult to rebut once established	Can be rebutted by evidence to the contrary
Presumption	No presumption required	Presumption of trust arises in certain circumstances

Introduction

Resulting trusts are a type of trust that arises by operation of law when property is transferred but the transferee is not intended to be the beneficial owner. There are two main types of resulting trusts: automatic resulting trusts and presumed resulting trusts. While both types of trusts have similarities, they also have distinct attributes that set them apart.

Automatic Resulting Trust

An automatic resulting trust occurs when property is transferred to someone else, but the transferor does not intend for the transferee to be the beneficial owner. In this situation, the law automatically imposes a trust on the property in favor of the transferor. The key characteristic of an automatic resulting trust is that it arises without the need for any evidence or presumption of the transferor's intentions.

One of the main attributes of an automatic resulting trust is that it is based solely on the legal title of the property. This means that the transferor retains the beneficial interest in the property, even though the legal title has been transferred to someone else. Another important aspect of an automatic resulting trust is that it can be established even if there is no evidence of the transferor's intentions at the time of the transfer.

• Arises without the need for evidence of the transferor's intentions
• Based solely on the legal title of the property
• Transferor retains the beneficial interest in the property
• Can be established even without evidence of intentions

Presumed Resulting Trust

A presumed resulting trust, on the other hand, arises when property is transferred to someone else, but there is a presumption that the transferor did not intend for the transferee to be the beneficial owner. Unlike an automatic resulting trust, a presumed resulting trust requires some evidence or presumption of the transferor's intentions at the time of the transfer.

One of the key attributes of a presumed resulting trust is that it is based on the presumption of resulting trust law. This means that there must be some evidence or circumstances that indicate that the transferor did not intend for the transferee to be the beneficial owner of the property. Another important aspect of a presumed resulting trust is that it can be rebutted by evidence showing that the transferor did intend for the transferee to be the beneficial owner.

• Requires evidence or presumption of the transferor's intentions
• Based on the presumption of resulting trust law
• Can be rebutted by evidence of the transferor's intentions

Comparison

While both automatic resulting trusts and presumed resulting trusts involve situations where the transferor did not intend for the transferee to be the beneficial owner of the property, there are some key differences between the two types of trusts. One of the main distinctions is the way in which they are established. An automatic resulting trust arises without the need for evidence of the transferor's intentions, while a presumed resulting trust requires some evidence or presumption of intentions.

Another difference between automatic resulting trusts and presumed resulting trusts is the way in which they can be rebutted. An automatic resulting trust is not easily rebutted, as it is based solely on the legal title of the property. In contrast, a presumed resulting trust can be rebutted by evidence showing that the transferor did intend for the transferee to be the beneficial owner.

Additionally, automatic resulting trusts are more straightforward in their application, as they do not require evidence of intentions at the time of the transfer. On the other hand, presumed resulting trusts can be more complex, as they rely on the presumption of resulting trust law and may require more evidence to establish.

Conclusion

In conclusion, automatic resulting trusts and presumed resulting trusts are both important types of trusts that arise when the transferor did not intend for the transferee to be the beneficial owner of the property. While they share some similarities, such as the fact that they both involve situations where the transferor's intentions are in question, they also have distinct attributes that set them apart. Understanding the differences between automatic resulting trusts and presumed resulting trusts can be crucial in navigating trust law and ensuring that property rights are properly established and protected.