Hudak v. Procek

This is an appeal from a decision of the Court of Chancery imposing a resulting trust on certain real property. The trial court applied the general presumption that a party who purchases property, and has it titled in another’s name, intends to retain beneficial ownership. In this case, however, the general rule does not apply because the purchasers are the parents of the record owner. Where the record owner is the natural object of the purchaser’s bounty, such as a child, it is presumed that the purchaser intended to make a gift of the property. Since the Court of Chancery applied the wrong…