Implied Trusts

An implied trust is one which is not expressly stated; rather, the implied trust arises because the court provides the trust as a remedy.  This type of trust is also known as a “constructive trust.” The implied or constructive trust will be found by the court where justice requires the trust; thus, the implied or constructive trust is an equitable remedy to prevent an injustice. 

Implied Trust Disputes

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.  Furthermore, 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 to its proper owner 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.  Implied trusts are not actual trusts created by a formal document which includes an appointed trustee.  The implied trust is a temporary legal remedy imposed by the court which ceases to exist after the property of the trust is properly transferred.

Legal Help

When handling a legal matter involving an implied trust, an experienced estate attorney can assist in ensuring that your legal needs and wishes are fulfilled.  The estate attorney can also help you to navigate through the judicial system and help you to understand the imposition of the implied trust remedy.