Moneyzine
Contents
/Personal Finance/Resulting Trust

Resulting Trust

Moneyzine Editor
Author: 
Moneyzine Editor
1 mins
September 25th, 2023
Advertiser Disclosure

Definition

The term resulting trust refers to the creation of an implied trust as determined through a court of law. Resulting trusts involve trustees that hold title to property on behalf of a donor, or settlor, that will eventually be transferred to another party.

Explanation

A resulting trust is created when a court of law determines one party is holding the title to, or is in possession of, property that rightfully belongs to another party. Resulting trusts can arise when an express trust fails. For example, if a donor didn't know a beneficiary had died before the creation of an express trust, it will fail since there is no beneficiary. The trustee would then have to hold the property in a resulting trust for the donor.

A resulting trust can also arise when an express trust does not exhaust all of the assets held in the trust. This can occur when a trust is established to provide a loved one with a source of lifetime income, and they pass away before all of the assets placed in the trust have been distributed. At that point, the trustee would be holding additional assets in a resulting trust for the original donor.

Resulting trusts are different than constructive trusts, which are also created by a court of law. However, constructive trusts typically involve a party that has been harmed in some way or wrongfully deprived of assets.

Related Terms

Related Content

  • What Can Help You Meet Your Budget While Shopping for Important Items?
    Budgeting while ensuring you don't compromise on quality can seem daunting. Whether filling your pantry, updating your wardrobe, or keeping up with the latest tech, smart shopping strategies are crucial for keeping your finances in check.
    April 2nd, 2024
  • How to Make a Million Dollars in 10 Years
    Truthfully, this title should actually be “How to Make a Million Dollars in 10 Years Without Going Into Debt", but that is just getting a little too winded for my liking. It’s true though!
    November 18th, 2024
  • How to Apply Maslow’s Hierarchy to Your Money This Year
    You might vaguely remember your psychology teacher talking about Maslow. He pointed at a picture of a triangle as you nodded off in the back of the school room.
    November 18th, 2024
  • How to Tackle Multiple Savings Goals
    When there’s only so much money to go around, there are often multiple savings goals competing for your money. Think of the young professional who’d like to get a more reliable car, buy a house, and save for retirement. Or consider the young family that’s saving for college, retirement, and a bigger house.
    March 22nd, 2024
  • The Countdown to Early Retirement: 10 Expenses to Eliminate
    Dreaming of waving goodbye to the daily grind five years ahead of schedule? The road to early retirement is paved with more than good intentions; it requires a meticulously crafted strategy with surprising twists. It's not solely about what you should be doing—like diligently saving a portion of your income or investing wisely—but also about what you need to stop doing.
    March 22nd, 2024

Contributors

Moneyzine Editor
The Moneyzine editorial team consists of writers and content specialists with diverse backgrounds.
Moneyzine 2024. All Rights Reserved.