A resulting trust arises when a trust fails for indefiniteness or for a non-human beneficiary. Under the majority rule, what is true about PMRT?

• A. PMRT does not apply
• B. PMRT applies but limited to non-human beneficiaries
• C. PMRT requires the trustee to return funds only if the decedent intended it
• D. PMRT requires the trustee to return funds to the decedent or intended beneficiary

Answer: (D)

When a trust fails because its terms are too indefinite or because the designated beneficiary is not a human being, a resulting trust comes into play to honor the settlor’s underlying intent. Under the majority rule, the property that would have been held in the trust is treated as if the trust never fully materialized and is returned to the person who funded it or to the person the decedent intended to benefit. In other words, the trustee must reconvey the funds to the decedent or to the intended beneficiary, rather than letting the money stay with the trustee or pass to others. This is grounded in preventing a windfall from an invalid plan and ensuring the settlor’s wishes are carried out to the extent possible.

So, the trustee’s obligation is to return funds to the decedent or the person the decedent intended to benefit. The other options miss this broader recovery rule: the rule isn’t limited to non-human beneficiaries, it doesn’t say the rule doesn’t apply, and it isn’t conditional only on the decedent’s intent in isolation.