Many potential clients with whom I speak believe that the person who has legal title to a piece of real property has an interest that is unlikely to be successfully challenged. In many cases, however, this is far from the truth. There are several types of situations in which a person who has been wrongfully deprived of title to property can regain it or be entitled to money damages for their loss. One of the most common situations is when a person provides funds for the purchase of property and title to that property is taken in another person’s name.
A resulting trust arises “when a person becomes invested with the title to real property under circumstances which in equity obligate him to hold the title and to exercise his ownership for the benefit of another. A trust of this sort does not arise from or depend on any agreement between the parties. It results from the fact that one person’s money has been invested in land and the conveyance taken in the name of another.” Teachey v. Gurley, 214 N.C. 288, 292, 199 S.E. 83, 86-87 (1938).784*784 The trust is created in order to effectuate what the law presumes to have been the intention of the parties in these circumstances—that the person to whom the land was conveyed hold it as trustee for the person who supplied the purchase money. Waddell v. Carson, 245 N.C. 669, 97 S.E.2d 222 (1957).
The classic example of a resulting trust is the purchase-money resulting trust. In such a situation, when one person provides the funds to purchase property, title to which is taken in the another person’s name, a resulting trust commensurate with his interest arises in favor of the one furnishing the funds. There are two possible ways to form a resulting trust based on the time at which consideration is paid. Either the consideration is paid before or at the time legal title passes, or it is paid after such time pursuant to an earlier agreement between the parties.
Evan Lohr is a North Carolina estate dispute attorney and has successfully represented individuals pursuing resulting trust claims. He can be reached at (919) 348-9211 or firstname.lastname@example.org.
Upon the appointment of the executor or administrator of a North Carolina probate estate, the personal representative or collector must notify all people or businesses having claims against the decedent to present them to the personal representative or collector. The notice must state that all claims must be presented within three months from the day of the first newspaper publication of the notice. The notice shall set out a mailing address for the personal representative or collector and must be published once a week for four consecutive weeks in a newspaper qualified to publish legal advertisements.
The personal representative or collector must also send to the last known address a copy of the published ntice to all persons, firms, and corporations having unsatisfied claims against the decedent who are actually known or can be reasonably ascertained by the personal representative or collector within 75 days after the granting of letters and, if at the time of the decedent’s death the decedent was receiving medical assistance as defined by G.S. 108A-70.5(b)(1), to the Department of Health and Human Services, Division of Medical Assistance. However, no notice shall be required to be delivered or mailed with respect to any claim that is recognized as a valid claim by the personal representative or collector.
A copy of the notice published, and an affidavit from a representative of the publishing company to the effect that such notice was published, along with an affidavit of the personal representative or collector, or the attorney for the personal representative or collector, to the effect that a copy of the notice was provided to each creditor shall be filed in the office of the clerk of superior court by the personal representative or collector at the time the 90 day inventory is filed.