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Simon Shields, LLB

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Legal Writing and Research

Equity - Resulting Trust

Farkas v. Bedic (Ont CA, 2016)

In this case the court makes some succinct comments on the constituent elements of resulting trusts:
[18] ..... A resulting trust is an arrangement where one person holds property for the benefit of another and typically is created or implied when title to the property is transferred to a party who did not provide any value for it. Unless the transfer is held to be a gift, the party is required to return the property to the true owner. Legally, the beneficial interest in the property “results” to the person who transferred legal title: see Pecore v. Pecore, 2007 SCC 17 (CanLII), [2007] 1 S.C.R. 795, at para. 24.


[20] ..... Whether a resulting trust is created or implied depends on the intent of the transferor at the time of transfer. Although the transferor gives another person legal title to the property, the transferor does not intend the other person to have a beneficial interest in the property. Thus, the other person holds the beneficial interest in trust for the transferor: Pecore v. Pecore at para. 5.

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