Remedial Trusts

Question 1

Basics of Remedial Trusts

Answer 1

Equitable remedy not subject to trust requirements

Sole duty of trustee is to convey property to beneficiary or settlor

Once transfer is complete, trust terminates

Question 2

Two Types of Remedial Trusts

Answer 2

(1) Resulting Trust

(2) Constructive Trust

Question 3

Resulting Trust

Answer 3

Remedy for when a trust fails

Trustee must return property to settlor or settlor’s estate

Goal = avoid unjust enrichment

Question 4

Constructive Trust

Answer 4

Remedy for when settlor causes fraud, duress, undue influence, breach of duty, detrimental reliance by third party, or other wrongful conduct

Goal = prevent unjust enrichment

LOOK FOR SOME KIND OF WRONGFUL CONDUCT