Fowkes v Pascoe
Court of Appeal
Citations: (1874-75) LR 10 Ch App 343.
The testatrix made a will giving her estate’s residue to her daughter-in-law for life, after which it would pass to the daughter-in-law’s children. Before and after making this will, the testatrix bought stocks in the joint names of herself and her daughter-in-law’s son. After the testatrix died, the court was asked whether those stocks formed part of the residue of her estate. This would be the case if the son held the stocks on resulting trust for the testatrix.
- Did the son hold the stocks on resulting trust?
The Court held that the stocks were a gift for the son, and so did not form part of the residue. While the presumption of resulting trust arose, there was sufficient evidence that the testatrix had intended the stocks as a gift to rebut this presumption.
This Case is Authority For…
The presumption of resulting trust is rebutted by proof that the purchaser intended their contribution as a gift or loan.