chapter  7
44 Pages

Resulting trusts

ByMohamed Ramjohn

The beneficial interest must belong to or be held for somebody; so if it was not to belong to the donee or be held in trust by him for somebody, it must remain with the donor. Equity fastens on the conscience of the person who receives from another property transferred for a specific purpose only and not therefore for the recipient's own purposes, so that such person will not be permitted to treat the property as his own or to use it for other than the stated purpose. A transfer to trustees was made subject to a marriage settlement that turned out to be void. The court decided that the fund was held on resulting trust for the settlor's estate on the ground that the money was paid on a consideration that had failed. Where the trust exhausts only some of the trust property, a resulting trust for the transferor or settlor may arise in respect of the surplus.