A trust created by a court based on what the law presumes to be the intent of the parties is called what?

A trust created by a court based on what the law presumes to be the intent of the parties is called what?

• A. Express Trust
• B. Resulting Trust
• C. Implied Trust
• D. Trust Agreement

Answer: (B)

Resulting trust is established by law to reflect the presumed intent of the parties when there is no express trust instrument or when a trust fails to be completed. The key idea is that the person who provides the property or funds is presumed to intend that the property be held in trust for their benefit (or for someone they designate), even though no explicit trust agreement exists. The title holder becomes a trustee holding for the beneficiary identified by the contributing party's intent. This differs from an express trust, which is created by a clear declaration or written trust instrument where the settlor explicitly sets the terms. It also differs from other forms of implied or constructive trusts, which are often used to prevent unjust enrichment or remedy wrongful conduct rather than to reflect the parties’ presumed intent about contributions. A trust agreement is just the document that creates an express trust, not a type of trust itself. So, when a court recognizes a trust based on what the law presumes the parties intended, that is a resulting trust.

Resulting trust is established by law to reflect the presumed intent of the parties when there is no express trust instrument or when a trust fails to be completed. The key idea is that the person who provides the property or funds is presumed to intend that the property be held in trust for their benefit (or for someone they designate), even though no explicit trust agreement exists. The title holder becomes a trustee holding for the beneficiary identified by the contributing party's intent.

This differs from an express trust, which is created by a clear declaration or written trust instrument where the settlor explicitly sets the terms. It also differs from other forms of implied or constructive trusts, which are often used to prevent unjust enrichment or remedy wrongful conduct rather than to reflect the parties’ presumed intent about contributions. A trust agreement is just the document that creates an express trust, not a type of trust itself.

So, when a court recognizes a trust based on what the law presumes the parties intended, that is a resulting trust.