This section is from the book "Popular Law Library Vol7 Equity Jurisprudence, Trusts, Equity Pleading", by Albert H. Putney. Also available from Amazon: Popular Law-Dictionary.
The two general classes of resulting trusts arise as follows:
(a) Where property is purchased with the money of one person and title taken in the name of another; and
(b) Where there is a partial or complete failure of the purposes of the trust, or where the property granted to the trustee is greater than is necessary for carrying out the purposes of the trust and there is no evidence that the trustee was intended to take beneficially.
(a) Where one person purchases property and takes the title in the name of another, the second party will be held to hold as trustee for the person making the purchase, unless such second party is the wife or child of the person making the purchase, in which case the transaction will be presumed to be an advancement or gift.3 In both cases it is only a presumption, and the true intention of the settlor may be shown; thus a stranger may take as a gift, or a wife or child may hold as a trustee.
A much stronger case of a resulting trust arises where a person purchases property in his own name with funds belonging to another.
3 Dyer vs. Dyer, 2 Cox, 92; Smithsonian Inst. vs. Meech, 169 U. S., 398.
"A trust also results in favor of one who pays only a part of the price. In other words, where two or more persons together advance the price, and the title is taken in the name of one of them, a trust will result in favor of the other with respect to an undivided share of the property proportioned to his share of the price." 4
"Where property is given by will or deed, stated to be on trust, but no trust is declared; or upon trusts thereafter to be declared, but no such declaration is made; or is given upon some trust which has wholly failed and become inoperative,5 or when property is given upon a trust which is too uncertain, indefinite, and vague in its declaration to be carried into effect,6 or if property is given upon a trust which is illegal, and therefore void,7 or upon a trust which fails by lapse, and the property is not otherwise disposed of,8 9" there will be a resulting trust back in favor of the settlor or his heirs.