Resulting and constructive trust

How to create a resulting trust?

1) Failure to dispose of beneficial interest

• Where a beneficial interest is not disposed of effectively, a resulting trust will arise in favor of the grantor E.g. Vandervell v IRC

2) Where a trust fails

• Where an express trust fails for any reasons such as no beneficiary under the trust, purpose of the trust is void, trust is void for uncertainty, a resulting trust will arise in favor of the grantor E.g. Re Diplock

3) Purchase in the name of another 

• Where a property is purchased in the name of one but with the money of another and there is no express intention of who the beneficial owner is, a resulting trust will arise in favor of the one that provided the money. (Dyer v Dyer)
• Because equity presumes that it was A's intention that B to whom the legal title is conveyed, should hold it on trust for A.
• Exception: if property is bought in the name of other for an improper or illegal purpose and purchaser disclosed such purpose, a resulting trust would not arise (Yim Bo Ying v Chung Iu Warm)
• This presumption can be rebutted
• E.g. evidence that the property was intended as a gift (Fulltrend v Longer Year)
• Presumption of advancement will rebut the presumption in Dyer v Dyer