New York Estates, Powers & Trusts Law Section 7-1.3 - Purchase-money resulting trust abolished

7-1.3 Purchase-money resulting trust abolished

(a) A disposition of property to one person for a valuable consideration paid, in whole or in part, by another is presumed fraudulent as against the creditors of the payor at the time of such disposition and, unless the presumption is rebutted, a trust results in favor of such creditors to the extent necessary to satisfy their claims; but title to the property vests in the transferee and no trust results to the payor unless the transferee either:

(1) Takes such property, in his own name, as an absolute transfer without the consent or knowledge of the payor; or

(2) In violation of some trust, purchases the property so transferred with money or property belonging to another.

Last modified: February 3, 2019