Holding Title for Someone Else - the Resulting Trust
A resulting trust is a trust imposed by the court over real property in which the person holding title purchased the property with another party's money.
The problem of letting someone buy property for you in that person's name.This arises more often than one might think: a party for one reason or the other wants to purchase real property, but temporarily does not want it to be in his or her own name. Odd as this may sound, and however unwise the decision to proceed in this manner may seem, the law will protect the buyer. In Illinois, a Chancery Court can impose a "resulting trust" over the property, and return it to the rightful owner. There are, of course, a number of requirements that must be met.
Requirements for a resulting trustThe requirements of a resulting trust are simple. First, there must be some clear, and usually written, evidence that the parties intended the property to be held by the non-title party. Otherwise, the Statute of Frauds may well prevent the claimant from asserting an unwritten agreement affecting title to real property. Assuming then that the claimant can demonstrate that it was his or her money used to purchase the property, and that the purchase was not a gift to the other party, a resulting trust may be imposed. The trust will not be imposed, of course, if the claimant's purpose is to perpetuate a fraud. The trust will be imposed for so long as it takes for one party or the other to prove his or her claims or defenses. If the claimant prevails, the Court may issue a judicial deed showing the claimant as the new owner.