purchase money resulting trust

Purchase money resulting trust is a type of resulting trust that may arise when one person pays all or part of the purchase price for property, but title to the property is taken in the name of another. In such circumstances, the law may presume that the title holder holds the property in trust for the person who provided the purchase money, unless there is evidence that the payment was intended as a gift or loan.

Purchase money resulting trusts commonly arise in domestic or family contexts, such as between spouses or domestic partners, when both parties contribute to the purchase of property but legal title is placed in only one person’s name. If a dispute later arises, such as upon separation or the death of the title holder, the contributing party may assert a purchase money resulting trust to reflect their equitable interest in the property.

The purpose of a purchase money resulting trust is restitutionary rather than punitive. It is used to prevent unjust enrichment by recognizing the beneficial ownership of the person who furnished the consideration for the property, even though that person is not named on the title. The scope of such trusts depends on the facts of the transaction and the applicable jurisdiction’s trust and property law.

[Last reviewed in February of 2026 by the Wex Definitions Team] 

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