Mayo v. Gortney
| Decision Date | 29 March 1985 |
| Citation | 468 So.2d 147 |
| Parties | Francis Louise MAYO v. Francis Juanita Mayo GORTNEY. 83-987. |
| Court | Alabama Supreme Court |
John E. Rochester, Ashland, for appellant.
Wilford J. Lane, Anniston, for appellee.
This is an appeal from a judgment entered by the Clay County Circuit Court imposing a trust in favor of the appellee, Francis Juanita Mayo Gortney (Juanita), on certain property, title to which is held in the name of the appellant, Francis Louise Mayo (Louise).
Juanita is the natural daughter of Louise and James Mayo. Louise and James were married in 1940, divorced in 1960, and remarried in 1980. James died January 5, 1981. At the time of his death, James owned two life insurance policies with a combined coverage of $25,000. Juanita was the sole named beneficiary on both policies. In anticipation of receipt of the insurance proceeds, a joint checking account was opened in the names of Louise and/or Juanita. Afterwards, Juanita received two checks, one for $20,000 and the other for $5,000, which she deposited in the joint account. Shortly thereafter, Louise used funds from the joint account to purchase approximately 30 acres of land. She also used funds from the account to pay the balance owed on a mobile home and to have a well dug.
Subsequent to the purchase of the land, Louise informed Juanita that she had executed a new will and that Juanita would not receive anything after her death. Louise also indicated that she intended to sell the land. Juanita then filed this lawsuit, seeking the imposition of a resulting trust, or in the alternative a constructive trust, on the property and seeking any other relief that might be proper. The trial court, sitting without a jury, heard the evidence and imposed a trust on the property, the mobile home, and the well. Louise appeals.
Generally, a resulting trust will be presumed in favor of one who provides purchase money for land when title is taken in the name of another. Strother v. Strother, 436 So.2d 847 (Ala.1983); Hooks v. Hooks, 258 Ala. 427, 63 So.2d 348 (1953). This rule does not require that the person furnishing the purchase money actually pay the money to the grantor; rather, it is sufficient if the payor furnishes the grantee the money, at or before the time of the conveyance, and the grantee then pays the purchase price. Adams v. Griffin, 253 Ala. 371, 45 So.2d 22 (1950); Young v. Greer, 250 Ala. 641, 35 So.2d 619 (1948). However, a resulting trust will not be presumed when title is taken in the name of another without the consent of the payor. Haavik v. Farnell, 264 Ala. 326, 87 So.2d 629 (1956).
This Court has held that the presumption of a resulting trust is rebutted where a husband or parent pays the purchase price for land and title is taken in the name of the wife or child. In such instances, the stronger, counter presumption of an intention to make a gift to the wife or child rebuts the presumption of trust. 1 Sykes v. Sykes, 262 Ala. 277, 78 So.2d 273 (1955). The presumption of trust is not rebutted however, where as here, the child provides the purchase money and the parent takes title to the property. 76 Am.Jur.2d Trusts § 208, p. 438-39 (1975); 5 A. Scott, The Law of Trusts § 442, p. 3333, 3337-39 (3d ed. 1967); Restatement (Second) of Trusts § 442, p. 402, 403 (1959); 89 C.J.S. Trusts § 129, p. 991-92 (1955). The reason for the distinction is found in G. Bogert, The Law of Trusts and Trustees § 460, p. 720, 739-41 (rev. 2d ed. 1977):
It is undisputed that the proceeds from the life insurance policies, used by Louise to purchase the property, were deposited in the joint account prior to the time of the conveyance. Furthermore, there is no question that the purchase money was furnished by Juanita. Juanita was the sole named beneficiary on both policies, and Louise, through her own testimony, admitted that she knew the money belonged to Juanita:
Thus, the only question that remains is whether Louise and Juanita's consent to use the money in the joint account to purchase the property. Juanita testified that prior to receipt of the insurance proceeds, she and her mother reached an agreement: Juanita would deposit the proceeds in the joint account and her mother would then use the money to purchase the property, with the understanding that Juanita would receive the property upon her mother's death. Louise denied that she ever told her daughter to deposit the proceeds in the joint account or that she made any agreement concerning future disposition of the property. However, despite her denials, on cross examination Louise testified to the following:
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...trust will be presumed in favor of one who provides purchase money for land when title is taken in the name of another." Mayo v. Gortney, 468 So.2d 147, 149 (Ala.1985). It is uncontradicted in this case that James purchased the property in question with his own funds and not the funds of Lo......
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