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Keywords

plaintiffappealburden of prooftrust
plaintiffdefendanttrustwill

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Cotton v. Wood, 25 Iowa 43, 1868 WL 213

Facts

Plaintiff Cotton purchased a property in Vinton, Iowa, on August 4, 1857, and had it conveyed to his wife, P. A. Cotton, under an agreement that she would convey it back to him or his assigns upon request. The conveyance was made to ensure the legal title was vested in her in case of Cotton's death. After the wife's death in 1862, Cotton occupied the property as a homestead and conveyed part of it to Vanatta. Cotton sought a decree to vest the title in himself and Vanatta, but the petition was initially dismissed.

That said plaintiff and his said wife adopted defendant, whereby she became entitled to all the rights of a child of said parties, and that on the 20th of September, 1862, the wife died. That the property since its purchase, has been occupied as a homestead by the said plaintiff Cotton, who, however, has conveyed a part of the lot to his co-plaintiff Vanatta.

Issue

The main legal issues are whether a resulting trust was created when the property was conveyed to the wife and whether the petition adequately established Cotton's claim to the property after his wife's death.

The main legal issues are whether a resulting trust was created when the property was conveyed to the wife and whether the petition adequately established Cotton's claim to the property after his wife's death.

Rule

When property is purchased by one person but conveyed to another, a resulting trust is created unless the conveyance is deemed an advancement. The burden of proof lies on the party seeking to establish the trust.

Where, upon the purchase of property, the consideration is paid by one, and the legal title conveyed to another, a resulting trust is thereby raised, and the person named in the deed will hold the property as trustee of the party paying the consideration.

Analysis

The court analyzed the nature of the conveyance to P. A. Cotton, noting that the express agreement for her to convey the property back to Cotton upon request negated any beneficial interest she might have had. The court also considered the implications of the property being a homestead and the legal rights of the surviving spouse.

The court analyzed the nature of the conveyance to P. A. Cotton, noting that the express agreement for her to convey the property back to Cotton upon request negated any beneficial interest she might have had.

Conclusion

The court reversed the dismissal of the petition, allowing Cotton's claim to proceed, as the initial ruling did not adequately consider the implications of the resulting trust and the nature of the conveyance.

The judgment of the District Court upon the demurrer to the first division of plaintiffs' petition is reversed, and the cause will be remanded for further proceedings not inconsistent with this opinion.

Who won?

Cotton and Vanatta prevailed in the appeal, as the court found that the initial dismissal of their petition was improper and warranted further proceedings.

The judgment of the District Court upon the demurrer to the first division of plaintiffs' petition is reversed, and the cause will be remanded for further proceedings not inconsistent with this opinion.

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