Constructive Trust Laws, Cases, and Claims Help

A constructive trust is no one which arises by an actual trust document; rather, the trust arises by court intervention. The trust will be found by the court where there is an indication that the current person who holds title to the property should not be holding the title, as continuing to do so is inequitable. Thus, the constructive trust is an equitable remedy to prevent an injustice.

Causes for Constructive Trusts

The constructive trust frequently arises where there has been evidence of bad faith, breach of a fiduciary duty or disloyalty by the trustee who was supposed to administer the trust in accordance with the trust directives. Moreover, the constructive trust will exist where there was fraud, homicide, duress or undue influence. The constructive trust applies to a particular asset or property. In addition, the court will advise the parties as to what, if any, conditions must be fulfilled in order to secure the property. Usually, this includes requiring the wrongdoer to correct any deficiencies and provide the property in the same condition as when the wrongdoer came into possession. For instance, if the wrongdoer failed to pay taxes on a property, the court will mandate that the taxes are paid in full prior to the transfer of the property to the rightfully entitled owner. Finally, the constructive trust is temporary, and only lasts until the property is transferred to the appropriate party.

Help for Constructive Trust Claims

Constructive trusts are not actual trusts which have an appointed trustee. The constructive trust is a temporary legal remedy which ceases to exist after the property of the trust are properly transferred. Whether the constructive remedy is the best remedy available depends upon the particular circumstances of the individual; thus, it is prudent to consult with an experienced estate planning attorney to ensure that your particular needs and wishes are fulfilled through the use of the constructive trust.

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