What is "resulting trust"

Result \Re*sult"\, v. i. [imp. & p. p. Resulted; p. pr. & vb. n. Resulting.] [F. r['e]sulter, fr. L. resultare, resultarum, to spring or leap back, v. intens. fr. resilire. See Resile.]

1. To leap back; to rebound. [Obs.]

   The huge round stone, resulting with a bound.
   --Pope.

2. To come out, or have an issue; to terminate; to have consequences; -- followed by in; as, this measure will result in good or in evil.

3. To proceed, spring, or rise, as a consequence, from facts, arguments, premises, combination of circumstances, consultation, thought, or endeavor.

   Pleasure and peace do naturally result from a holy and good life.
   --Tillotson.

   Resulting trust (Law), a trust raised by implication for the benefit of a party granting an estate. The phrase is also applied to a trust raised by implication for the benefit of a party who advances the purchase money of an estate, etc.
   --Bouvier.

   Resulting use (Law), a use which, being limited by the deed, expires or can not vest, and thence returns to him who raised it.
   --Bouvier.

   Syn: To proceed; spring; rise; arise; ensue; terminate.

n. (context legal English) A trust that is imply in law, under which property entrusted to one party is not to be used for the benefit of that party, but for that party to use for the benefit of a third party.

n. a trust created by a court when it is judged that it was the intention of the parties to create a trust

A resulting trust (from the Latin 'resultare' meaning 'to jump back') is the creation of an implied trust by operation of law, where property is transferred to someone who pays nothing for it; and then is implied to have held the property for benefit of another person. The trust property is said to "result" back to the transferor (implied settlor). In this instance, the word 'result' means "in the result, remains with", or something similar to "revert" except that in the result the beneficial interest is held on trust for the settlor. Not all trusts whose beneficiary is also the settlor can be called resulting trusts. In common law systems, the resulting trust refers to a subset of trusts which have such outcome; express trusts which stipulate that the settlor is to be the beneficiary are not normally considered resulting trusts.

The beneficial interest results in the settlor, or if the settlor has died the property forms part of the settlor's estate (intestacy). It remains with the person and Re Vandervell case has proven that only the Beneficial interest disappears but not the beneficiary interest.