What does a constructive trust do?

A constructive trust is not an actual trust by the traditional definition. It is a legal fiction that is used as a remedy for unjust enrichment. Hence, there is no trustee, but the constructive trust orders the person who would otherwise be unjustly enriched to transfer the property to the intended party.

What is an example of a resulting trust?

A purchase money resulting trust arises when one person purchases and pays for property and the name of another person is on the title. For example, a person purchases a farm for $100,000 and directs the seller to make the deed out to a third person.

What are the four elements of constructive trust?

The elements of a constructive trust are: (1) a promise; (2) transfer of the property and reliance thereon; (3) a confidential relationship; and (4) unjust enrichment. See Bergmann v. Slater, 922 So.

How do you prove a constructive trust?

How do you prove a Constructive Trust?
  1. Express Agreement for which a party relied upon and acted to their detriment or altered their position (such as paying money for a property related expense); or.
  2. Implied Agreement – through common intention and conduct.

What are the two categories of resulting trusts?

These trusts come in two forms: automatic resulting trusts, and presumed resulting trusts. Automatic resulting trusts arise from a “gap” in the equitable title of property.

What does a resulting trust do?

A type of trust that is imposed by law. It returns the beneficial ownership in the trust property back to the settlor.

What is an implied resulting or constructive trust?

Resulting or presumed trust- the matter is dealt with legally, taking into account all of the evidence. In a resulting trust one person confers title to property on another but refrains beneficial ownership of it. Constructive Trust, created for the purpose of being fair to each party.

What is the general basis for a constructive trust of the family home?

The elements of such a constructive trust require evidence that is related to the acquisition of the property, or exceptionally subsequent to such acquisition, of an express or implied intention to share the property, relied on by the claimant to his or her detriment.

Is constructive trust a cause of action?

“A constructive trust is an equitable remedy, not a cause of action in and of itself, which can be imposed against one who wrongfully detains a thing by fraud, accident, mistake, undue influence, the violation of a trust, or other wrongful act.” (See Civ.

What is resulting trust in land law?

A resulting trust is an implied trust that comes into existence by operation of law, where property is transferred to someone who pays nothing for it; and then is implied to have held the property for benefit of another person. The trust property is said to “result” or jump back to the transferor (implied settlor).

What is a constructive trust in equity law?

A constructive trust is an equitable remedy imposed by a court to benefit a party that has been wrongfully deprived of its rights due to either a person obtaining or holding a legal property right which they should not possess due to unjust enrichment or interference, or due to a breach of fiduciary duty, which is …

What gives rise to a constructive trust?

A constructive trust arises by operation of law whenever the circumstances are such that it would be unconscionable for the owner of a property (usually but not necessarily the legal estate) to assert his own beneficial interest in the property and Page 4 deny the beneficial interest of another.

In what circumstances do resulting trusts arise?

‘A resulting trust arises in two sets of circumstances: (A) where A makes a voluntary payment to B or pays (wholly or in part) for the purchase of property which is vested either in B alone or in the joint names of A and B, there is a presumption that A did not intend to make a gift to B: the money or property is held …

When can a resulting trust arise?

A ‘resulting trust’ arises when “B” has made a direct financial contribution to the purchase of the property registered solely in “A”’s name. It is important to have evidence of this payment and to show that this contribution to the purchase was not intended to be a gift or a loan.

How is a constructive trust enforced?

Enforcement of a Constructive Trust

The establishment of a constructive trust is typically imposed by a court of law. The court may choose to enforce this equitable remedy if the defendant would receive an unfair advantage if the trust is not imposed, or if the defendant has interfered with an existing trust.

Why are constructive trusts important?

⇒ Constructive trusts will give rise to equitable interests: The beneficiary will have an interest in the trust property. Gains and losses become the property of the beneficiary.

What is a resulting trust claim?

A claim based on a resulting trust means that the property is in your partner’s name but is really your property. This might be found where: you gave property to your partner that they didn’t pay for, or. property was purchased in only your partner’s name but you contributed to buying the property.

Is constructive trust revocable?

Unlike other trusts, which can last your entire lifetime, constructive trusts are typically meant to be temporary. The trust’s main purpose is to fix whatever situation caused you to unfairly lose ownership of your property and nothing more.

Is a constructive trust an implied trust?

Constructive trusts are trusts that may be implied in the absence of a declaration of trust, where the trustee has induced another to act to their detriment in the belief that if they do so act to their detriment they would acquire a beneficial interest in the land (Gissing v Gissing [1971] AC 881 Case summary).

What is the presumption of resulting trust?

The presumption of resulting trust applies in estate contexts when a parent gratuitously transfers his or her assets to an adult child. The court will presume that the child is holding the property in trust for the parent’s estate, unless the child can prove that the transfer was intended to be a gift.

What is a resulting trust family law?

In family law, a resulting trust is a remedy which allows married and unmarried spouses whose name is not on the title of a property to share in the value of that property, where it is equitable (i.e- fair) in the circumstances to do so.

What is a common intention constructive trust?

A Common Intention Constructive Trust is a type of constructive trust where there is a common intention of the parties regarding the sharing of the beneficial interest in a property in which the legal title of the property is vested in one of the parties only.