TRUST

Constructive Trust

If the price of the sale of property is loaned or paid by a person for the benefit of the other and the conveyance is made to the payor or lender to secure the payment of the debt. A trust arises by operation of law in favour of the person for whom it is paid for. The latter my redeem the property and compel the conveyance to him.

When an absolute conveyance is made to secure the performance of the obligation of the grantor towards the grantee, there is an implied trust. If the fulfilment of the obligation is offered by the grantor when it becomes due, the grantor may demand the conveyance of the property to him.

When a trustee, guardian or other persons who hold fiduciary relationship and purchase property with the use of trust fund and cause the conveyance of legal estate to him or to third persons, an implied trust is created by operation of law in favour of the one who own the said funds.

When the property is acquired through mistake or fraud, the person who obtains it, by force of law, is the trustee for the benefit of the person whom the property comes from.

Resulting Trust

There is an implied trust when the property is sold and the legal estate is granted to person but the price is paid by another for the purpose of having the benefits. The latter is the beneficiary and the former is the trustee. When property is conveyed to children whether illegitimate or legitimate, there is no trust implied but it is presumed that such conveyance is a gift in favour of the children.

There is an implied trust when a donation is granted to a person but it appears that although that a legal estate is transmitted to the donee, he nevertheless has no beneficial interest or only a part thereof

When a land passes to a person by succession and he causes the legal title to be in the name of another, there is an implied trust in favour of the true owner

When two or more person agree to purchase a property and by common consent, the legal title is taken in the name of one of them, an implied trust arises by operation of law in favour of all of the owners in proportion to the interest of each.

Whenever property is conveyed to a person in reliance upon his declared intention to hold it or transfer it to another or the grantor, there is an implied trust in favour of the person whose benefit is contemplated.