Fowkes v Pascoe

Mrs Baker bought two sums of stock. One was put in the names of herself and a young lodger called Mr Pascoe, who she treated like a grandson. The other was in her and her friend's name. It was argued by the executor, Fowkes, that when Mrs Baker died Pascoe held the stock on resulting trust.

James LJ held that although a presumption of a resulting trust applied, it was rebutted on the facts, because plainly Mrs Baker intended to make a gift to Mr Pascoe.

the evidence in favour of a gift and against trust is absolutely conclusive… The lady had £500 to invest; she had already large sums of stock standing in her own name, besides other considerable property. Is it possible to reconcile with mental sanity the theory that she put £250 into the names of herself and her companion, and £250 into the names of herself and [Pascoe], as trustees upon trust for herself? What trust - what object is there conceivable in doing this?

• English trust law