Remedial Trusts

Question 1

What is a resulting trust?

Answer 1

Used when a trust fails.

Trustee must return property to settlor or settlor’’s estate.

Purchase money Resulting Trust
- Person one buys property, but person two takes title. If personal two is not the natural object of persona one’s bounty, a court will create a purchase money resulting trust.

Can be avoided by gift over clause.

Question 2

What are constructive trusts?

Answer 2

A remedy used to prevent unjust enrichment if 3rd party takes advantage of settlor. Key characteristic is wrongful conduct which must be directed toward the settlor.

I.e. Fraud, duress, undue influence, breach of duty, etc.