A trust that is presumed by the court from certain situations.
Similar to a constructive trust exceot that for resulting trusts, the court presumes an intention to create a trust; the law assumes that the property is not held by the right person and that the possessor is only holding the property "in trust" for the rightful owner.
In constructive trusts, the courts don’t even bother with presuming an intention; they simply impose a trust from the facts.
In the 2nd edition of the Canadian doctrine The Law of Trusts (2005, by E. Gillese and M. Milczynski), the authors offer this description:
"The resulting trust, like the constructive trust, arises by operation of law. It occurs when the legal owner of property is found to hold the property for the benefit of the donor. Unlike the constructive trust, however, the resulting trust is a static legal concept; the scope of its operation is limited and the courts appear unwilling or unable to expand its application outside of three situations:
- Where a trustee holds property under the terms of an express trust and the trust fails in whole or in part. In this case, a resulting trust may be said to be a consequence of the failed express trust;
- Where A purchases property and title is taken in the name of B, or, jointly, in the names of both A and B; (and)
- Where A voluntarily and gratuitously transfers property into the name of B, or into the joint names of A and B."