Remedial Trusts Flashcards
What is a Remedial trust?
A remedial trust is an equitable remedy created by operation of law. Remedial trusts are passive and that the sole duty of the trustee is taken by the trust property to the beneficiary. After this has been accomplished, the trust terminates.
What is a resulting trust?
A court created trust requiring the property holder to return it to the settler of the settlers estate. The goal is to prevent unjust enrichment. They may be imposed to where there is: one, failure of an express trust, or two, an incomplete disposition of trust assets due to excess corpus.
What is a constructive trust?
A constructive trust is imposed because the court concludes that the person holding title to the property (not mere possession), if permitted to keep it, would profit by wrong doing or would be unjustly enriched.
What are the equitable defenses to claims seeking a constructive trust?
Unclean Hands: plaintiff has engaged in unethical or immoral serious misconduct closely related to the claim; it may not have caused injury to the defendant.
Laches: The denial of equitable relief because of an unreasonable delay in pursuing an equitable remedy of which the plaintiff was aware or should have been aware, and which caused prejudice to the defendant.
What is a gift over clause?
Provides for a disposition of the trust property in the event the trust purpose fails. Majority of courts will honor this clause before imposing an equitable remedy.
