Resulting Trust
A trust that arises by operation of law where: (1) an express trust fails or does not exhaust the trust property (automatic resulting trust), or (2) a person transfers property to another without intending to make a gift (presumed resulting trust). The property is held on trust for the transferor.
Independent editorial summary — not the official statute text. Read the official version on legislation.gov.uk.
Where property is bought in the name of two or more people without any express declaration of how they hold it beneficially, equity does not simply assume the legal owners share it equally. HMRC's Capital Gains Manual, discussing Goodman v Gallant, explains that where a person claims to have contributed to the purchase price of property which stands in the name of himself and another, they can rely on the well known presumption of equity that a person who has contributed a share of the purchase price of property is entitled to a corresponding proportionate beneficial interest in the property by way of implied or resulting trust.
That presumption only operates as a fallback. If the conveyance itself contains an express declaration of trust that comprehensively sets out the beneficial interests, there is no room for a resulting trust to arise unless and until the conveyance is set aside or rectified — the express declaration is treated as conclusive of the parties' beneficial shares.
Related terms
Official sources
This explanation is drawn from the official sources below; every substantive statement is verified against them. For advice on a specific matter, see our find help page.