10:36
that would be more interesting
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Simple English definitions for legal terms
Purchase Money Resulting Trust
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A quick definition of Purchase Money Resulting Trust:
Purchase Money Resulting Trust: When a couple buys a house together but only one person's name is on the title, the law says that the other person still has a right to the house if the title-holder dies without a will. This is called a purchase money resulting trust. The non-title holding partner can get the house if they paid for it too.
A more thorough explanation:
A purchase money resulting trust is a legal concept used in trusts and estates law. It applies to domestic partnerships when both partners contribute to the purchase of a property, but only one partner's name is on the title. If the partner whose name is on the title dies without a will, the purchase money resulting trust is awarded to the non-title holding partner.
This means that the non-title holding partner will receive the property as a result of their contribution to the purchase, even though their name is not on the title. However, this is only true if the non-title holding partner can prove that they gave consideration (such as money or labor) for the property.
John and Jane are in a domestic partnership and decide to buy a house together. They both contribute money towards the down payment, but only John's name is on the title. Unfortunately, John dies without a will. Because they were in a domestic partnership and both contributed to the purchase, Jane can claim a purchase money resulting trust and receive ownership of the house.
Another example could be a situation where a couple buys a car together, but only one person's name is on the title. If that person dies without a will, the other partner may be able to claim a purchase money resulting trust and receive ownership of the car.