What is the test for a resulting trust?

British Columbia, Canada


The following excerpt is from Naidu v. Clemont, 1998 CanLII 6185 (BC SC):

The third consideration is the legal principles applicable to the claim itself. The minority decision of Mr. Justice Dickson in Rathwell v. Rathwell, 1978 CanLII 3 (SCC), [1978] 2 S.C.R. 436 is the lighthouse, describing resulting trusts and constructive trusts. At pp. 451-452 Mr. Justice Dickson dealt with resulting trusts in these words: Resulting trusts are as firmly grounded in the settlor's intent as are express trusts, but with this difference - that the intent is inferred, or is presumed as a matter of law from the circumstances of the case. ... The presumption of a resulting trust is sometimes explained as the fact of contribution evidencing an agreement ... The courts are looking for a common intention manifested by acts or words that property is acquired as a trustee.

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