Trust Disputes
When a person wants to set aside money, real estate or other property or assets for the benefit of a family member, charity or other person or entity, he or she may create a trust. Trusts are used for many reasons, including tax planning, creditor protection, estate planning, and control of distribution. There are many types of trusts, including revocable trusts, irrevocable trusts, family trusts, inter vivos trusts, insurance trusts, and charitable trusts. Disputes often arise between beneficiaries and trustees or between different beneficiaries. The types of disputes vary, including complaints regarding investment choices, self-dealing by the trustee, inadequate generation of income, preferential treatment of some beneficiaries over others, misappropriation of assets, mismanagement, fraud, poor tax planning and failure or refusal to account to trust beneficiaries. The lawyers at Gaslowitz Frankel LLC have years of experience representing trustees or beneficiaries when disputes arise.
Legal News & Firm Updates
Rosado v. Rosado - Implied Trust
Posted: May 23rd, 2008 by Gaslowitz Frankel LLCA son brought suit seeking a fifty percent ownership interest in property by means of an “implied trust” (a trust imposed by the court against one who has obtained property by wrongdoing, thereby preventing the wrongful holder from being unjustly enriched).
The claim involved a home and lot purchased by his mother in 1994. She paid the $24,000 down payment, she was the sole owner under the sales agreement, and she was the only person obligated on the mortgage. Three days after the closing, the son gave his mother a $12,000 check, noting that it was for “investment.” Eight years later, the mother transferred title to all her real and personal property into a trust. The purpose of the trust was to provide for her support, maintenance, and health care.
Sometime later, the home was put on the market to provide liquidity to the Trust to enable it to pay the mother’s expenses. In his suit, the son claimed that he and his mother had a verbal agreement to own the home as partners. The mother and trust denied that the son had any interest and filed a motion for summary judgment (a ruling that there are no issues of fact to be decided and so the party moving for summary judgment must prevail). The trial court granted the motion and the Court of Appeals affirmed.1
The type of implied trust the son attempted to establish was a “purchase money resulting trust” (a trust implied for the benefit of the person paying money for the transfer to another person of title to property). It must be shown, however, that the money was paid at or before the time of the closing, and that it was the intent of the parties at that time that the person claiming the benefit of the trust should pay the purchase money. Here, the son gave his check three days after the closing. The only evidence to the contrary was his affidavit claiming a verbal agreement with his mother, and that evidence was inadmissible.
1 Rosado v. Rosado, 2008 WL 2151717 (Ga. App. 2008)
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