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TYPES OF TRUST – WHERE IMPLIED TRUST WILL ARISE

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To this end, there are Express Trusts, Implied or Resulting Trusts and Constructive Trusts. Express Trusts arise when the owner declares himself a trustee of the property for the benefit of another person or vests property in another person as trustee for the benefit of another person. Implied or Resulting Trust arise from the presumed intention of the owner, and the presumed intention arises by operation of law not by agreement of parties Constructive Trusts are trusts imposed by equity regardless of the intention of the owner of the property, where it will be unconscionable for the “apparent beneficial owner” or trustee to hold the property for his benefit- see Equity and Trust in Nigeria 2nd Ed. by J. O. Fabunmi. We are concerned with implied or resulting trusts, which may arise in the following circumstances – (i) Where an express trusts fails (ii) Where the beneficial interest under an express trust is not fully disposed of or exhausted. (iii) Where there is a purchase in the name of another or where a person makes a voluntary conveyance of his property to another.

— A.A. Augie, JSC. Huebner v Aeronautical Ind. Eng. (2017) – SC.198/2006

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TRUST SIMPLICITER

Trust, simpliciter, is the right enforceable solely in equity to the beneficial enjoyment of property to which another person holds the legal title. It is a property interest held by one person (the trustee) at the request of another (the settlor) for the benefit of a third party (the beneficiary). For a trust to be valid, it must involve specific property. Certainty of subject matter is an important element in trust. It should reflect the settlor’s intent and be created for a lawful purpose.

— A. Fabiyi, J.S.C. Ibekwe v. Nwosu (2011) – SC.108/2006

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CONSTRUCTIVE TRUSTS ON VALIDITY OF TITLE DOCUMENTS

Trust is defined at page 1513 of the Blacks Law Dictionary, 7th Edition as the right enforceable solely in equity to the beneficial enjoyment of property to which another person holds the legal title. Where a party claims certain property that is held in constructive trust for his own benefit, he has a duty to prove that the title document in possession of the trustee is valid and in proper custody. The moment he successfully contradicts and renders the title document in the name of the trustee invalid, his claim automatically fails, since the success of his claim depends largely on the validity of the documents of title in the name of the trustee.

— P.A. Galumje, JSC. Huebner v Aeronautical Ind. Eng. (2017) – SC.198/2006

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RESULTING TRUST IS BASED ON THE PRESUMED INTENTION OF THE PARTY

One other expression for resulting trust is implied trust. An implied trust is one founded upon the unexpressed but presumed intention of the settlor. Such trusts are also referred to as “resulting” because the beneficial interest in the property comes back or results to the person who provided the property or to his estate.

— N. Tobi, JSC. Ezennah v Atta (2004) – SC.226/2000

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CONSTRUCTIVE TRUSTS IS NOT BASED ON THE PRIOR INTENTION OF THE PARTIES

In Kotoye v Saraki (1992) NWLR (Pt. 264) 156, (1992) 11/12 SCNJ 26, this Court held that constructive trust, as in this case, imposed by equity on the ground of conscience and is not based on the prior presumed intention of the parties. See Ughtevbe v Shonowo (supra); Ibekwe v Nwosu (2011) 9 NWLR (Pt. 1251) 1 at 5 Paragraphs A-C.

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WHAT IS A RESULTING TRUST

Now, what is resulting trust? An implied trust or resulting trust is a trust founded upon the unexpressed intention of the settlor. One example of such a situation is where a purchased property is conveyed into the name of someone other than the purchaser or where, as in this case, a person applies for leasehold of a right of occupancy in the name of another person. The clear result of such cases is that the benefit accrues to the person who advances the money. Further, the same situation would arise even if the advancement of money is indirect, as where one party pays expenses which the other would otherwise have had to pay.

– Musdapher, JSC. Atta v. Ezeanah (2000)

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CERTAINTIES IN A TRUST

I do agree the test for express trust is the existence of the three certainties set out by Chief Fagbohungbe, that is when a trust is created intentionally by the act of the settlor. There is also implied trust. This is where the legal title to property is in one person and the equitable right based on the beneficial enjoyment of the same property in another, a court of equity will from those circumstances infer an implied trust. Therefore an implied trust is a trust founded upon the unexpected, but presumed intention of the settlor. Under certainty of intention the words used must be examined to see whether the intention was to impose a trust upon the donee. The intention must also be genuine and not a stain as to where the settler did not intend the trust to be acted upon but entered into it for same ulterior motive such as deceiving creditors. Under certainty of objects, the trust must be for ascertainable beneficiaries.

– Nwodo, JCA. OLAM v. Intercontinental Bank (2009)

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