What is a purchase money resulting trust?

A purchase money resulting trust arises in situations where one party provides the purchase money for a property, but the title is held in the name of another person. The law presumes that this relationship creates an obligation for the person holding the title to hold the property in trust for the actual purchaser, thus establishing a trust relationship based on the purchase money. This presumption can be rebutted, but it is generally accepted that the person who provided the funds intended to benefit from the property, even though their name is not on the title.

In this context, it is important to understand that the purchase money resulting trust is focused on the intention of the parties and the source of the funds used to acquire the property. The other options listed do not accurately reflect the characteristics or legal principles surrounding this type of trust. For instance, a trust created for future earnings would not specifically address the situation where title ownership differs from the source of the purchase funds, nor would it imply the existence of a presumed obligation based on the titleholder's actions. Similarly, trusts established for the benefit of minors and trusts with specified investment returns focus on different purposes and requirements that do not encompass the fundamental aspects of purchase money resulting trusts.