Trusts

Question 1

When does is a resulting trust created?

Answer 1

Arises where the court implies a trust and declares settlor or their heirs to be the beneficiary
* May arise where express trust fails (e.g., fails to name beneficiaries), and beneficial interest reverts to settlor
* May arise when trust purpose is fully satisfied and some trust property remains–reverts

Question 2

When is a constructive trust created and what is it?

Answer 2

A flexibile equitable remedy imposed to prevent unjust enrichment
* Constructive trustee’s duty is to convey property to person who would have owned it but for wrongful conduct
* Burden of proof is clear and convincing evidence

July 2019