Wilma buys a painting that is to be sold at an auction next week, but she has an unforeseen engagement that requires her to go out of town on the day of the auction. She asks her sister, Sara, to attend the auction and bid for the painting. If the sale is successful, Sara is to claim legal title to the painting until Wilma returns. What kind of trust is created between Wilma and Sara?

Question

Quizplus · Accepted Answer

A resulting trust is created when the legal title of the property is transferred to one person but the beneficial interest remains in another. In this case, Wilma has transferred legal title to Sara, but the beneficial interest remains with Wilma until she returns.

Wilma Buys a Painting That Is to Be Sold at an Auction