Under the majority rule, a purchase money resulting trust (PMRT) requires the trustee to:

Under the majority rule, a purchase money resulting trust (PMRT) requires the trustee to:

• A. PMRT is recognized only in New York
• B. PMRT requires always a court order
• C. PMRT does not apply to decedents
• D. Under the majority rule, PMRT requires the trustee to return funds to the decedent or intended beneficiary

Answer: (D)

The main idea tested is that when someone pays the purchase price for property but the title sits in someone else’s name, the majority rule creates a purchase-money resulting trust in favor of the person who provided the funds. In that view, the trustee holds the property not for the person on the deed, but for the person who financed the purchase (or their estate if they have died). Therefore the trustee must return those funds or transfer the beneficial interest to the decedent or the intended beneficiary. This protects the financier’s interest by ensuring they ultimately benefit from the transaction. The other statements don’t fit: PMRT is not limited to New York, it doesn’t always require a court order, and it does apply to decedents when the purchase money came from the decedent or their estate.

The main idea tested is that when someone pays the purchase price for property but the title sits in someone else’s name, the majority rule creates a purchase-money resulting trust in favor of the person who provided the funds. In that view, the trustee holds the property not for the person on the deed, but for the person who financed the purchase (or their estate if they have died). Therefore the trustee must return those funds or transfer the beneficial interest to the decedent or the intended beneficiary. This protects the financier’s interest by ensuring they ultimately benefit from the transaction. The other statements don’t fit: PMRT is not limited to New York, it doesn’t always require a court order, and it does apply to decedents when the purchase money came from the decedent or their estate.