4.12.3.52 Resulting Trusts

Date of effect

This topic has effect to resulting trusts from 1 January 2002.

Summary

This topic contains information on the following:

  • resulting trusts, and
  • assessment of resulting trusts.

Resulting trusts

Resulting trusts are a type of non-express trust. The most common situation in which a resulting trust arises is where the purchaser of a property does not also receive the legal title to the property (e.g. the property is not put into the purchaser's name). In such cases the holder of the legal title will be presumed to be holding the property on trust for the purchaser.

Assessment of resulting trusts

Generally the private trust and companies rules are to be applied to resulting trusts. This is irrespective of when the resulting trust was created.

Explanation: A resulting trust arises where an individual can establish that in spite of being the legal owner of an asset, that they only hold this asset on behalf of someone else.

Policy reference: SS Guide 4.12.3.50 Background to Non-Express (Implied) Trusts

Last reviewed: 21 September 2015