Constructive and Resulting Trusts Flashcards
1
Q
Define: Constructive Trust
A
Not really a trust, but rather an equitable device meant to remedy a bad act.
Wrongful conduct + unjust enrichment = constructive trust
2
Q
When does a constructive trust arise?
A
It arises automatically and does not require the necessary five elements of a trust
3
Q
What are some examples of bad acts that may result in the creation of a constructive trust?
A
Fraud
Intentional acts of malfeasance (e.g. murder)
Willful breach of a fiduciary duty
4
Q
When does a resulting trust arise?
A
Arises by operation of law to do equity, rather than by actions of the initial property owner as trust settlor
5
Q
What does a resulting trust do?
A
Directs property to be returned to its original owner
