Resulting Trust Deemed Appropriate Mechanism to Unwind Joint Tenancy
, 987 A.2d 909 (Vt. 2009): Parents took title to real property used in the family business as tenants by the entirety with son as a joint tenant with rights of survivorship. Although the son signed the promissory note and mortgage, he never made any mortgage payments or paid any of the expenses associated with the property. The family business moved from the site and it was leased to another business. The son then sued for a share of the rents.
The trial court found that the joint tenancy was created solely for estate planning purposes and imposed on constructive trust on son. On appeal, the Vermont Supreme Court affirmed, but held that a purchase-money resulting trust was created because the evidence showed that the parents did not intend to make a gift to their son at the time of the creation of the joint tenancy.