Unit 6 Implied Trusts

• Implied Trusts - what are the two types


  Resulting Trusts and Constructive Trusts
• ARTS


  Automatic Resulting Trusts

  Re Vandervell Trhats (no 2) [1974]
• PIRTs


  Presumed intention resulting trusts
• Circumstances in which resulting trusts have arisen

  Resulting trusts arising upon transfers in trust (c.f. ARTS)

  Resulting trusts arising out of apparent gifts (c.f. PIRTS)
• Presumption of Advancement (gift)

  special relationships

  father to child - yes (Crabb v Crabb)
• Family home


  Constructive trust
• Courts have no power to adjust property ownership in the family home

  Pettit v Pettit [1970]
• Issues with CICTs


  Cohabitation “common law” spouses not covered

  Burns v Burns [1984]
• CICTs


  Common intention resulting trusts
• Structure for approaching a problem concerning a family home

  • Common interest plus detrimental reliance
  • Analyse the CI
  • Is it express or Inferred?
  • What is necessary for court to infer? Direct contributions okay. Indirect??
  • What does the share amount to? Quantification
  • Consider proprietary estoppel
• Is there a constructive trust? What is needed?

  Common Intention

  Two kinds

  • express (Eves v Eves [1975]
  • inferred (direct - no difficulty - Lloyds Bank v Rosset [1991]) (indirect - much debate - Stack v Dowden [2007] Hale suggests law has moved on - now looks at whole course of dealings)
• Detrimental reliance 


  Significant building work - yes (Eves v Eves)
• Detrimental reliance - decorating and supervising renovation work (Lloyds bank v rosset)


  nope - “acts which any wife would do”
• DR - gardening work, laying a lawn etc (Hannaford v Shelby [1976]


  Not enough - just a hobby
• Detriment must be substantial/meaningful

  Gillet v Holt [2001]