What is a resulting trust and constructive trust?
What is constructive and resulting trust? A resulting trust is created when title to a property is in the name of a party that did not provide any value for the property, and that party is then required to return the property to the true owner 3. A constructive trust is imposed when there has been unjust enrichment, regardless of the intention of the parties.
What is the distinction between a constructive trust and a resulting trust? A constructive trust is a civil remedy, where a person can recover property or damages from a defendant that would otherwise be unjustly enriched by keeping the contents of the trust. A resulting trust is dictated by the court based on the conduct of the parties.
What does a resulting trust do? 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 resulting trust and constructive trust? – Related Questions
What does it mean to impose a constructive trust?
A constructive trust is a duty by one person or company to hold some property for another person or company. A constructive trust is set up by a court as an “equitable remedy.” An equitable remedy is something done by the discretion of the court and not in accordance with a statute.
What are the elements of constructive trust?
“The imposition of a constructive trust requires: (1) the existence of res (property or some interest in property); (2) the right of the complaining party to that res; and (3) some wrongful acquisition or detention of the res by another party who is not entitled to it.” See Burlesci v.
What is the remedy for a constructive trust?
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, oppressive conduct or due to a breach of fiduciary duty.
How do you prove a constructive trust?
The following must be shown for the court to impose a constructive trust: “(1) the existence of a res (property or some interest in property)’ (2) the right of a complaining party to that res; and (3) some wrongful acquisition or detention of the res by another party who is not entitled to it.” Communist Party v
What is a common intention constructive trust?
A person holds an asset that he/she has obtained by means of fraud; Two people share a common intention that a person should have a beneficial interest in an asset and that person has acted to his/her detriment on the basis of that intention. This is known as ‘common intention constructive trust’.
How do you set up a constructive trust?
How Constructive Trusts Work. A constructive trust first requires that there be some sort of court action between a property owner and another person who is unfairly benefiting from the property. So for example, say your elderly mother’s caretaker coerces her into signing over the title to a piece of property she owns.
How do you rebut presumption of resulting trust?
The presumption of a resulting trust is rebuttable by proof on a balance of probabilities, given that were a transfer of property has been made for no payment, the onus is on the transferee to prove that a gift was intended.
What is the doctrine of resulting trust?
An arrangement whereby one person holds property for the benefit of another, which is implied by a court in certain cases where a person transfers property to another and gives him or her legal title to it but does not intend him or her to have an equitable or beneficial interest in the property.
What type of trust is a Quistclose trust?
A Quistclose trust is an example of an ‘automatic’ resulting trust, ie a trust which arises where property is transferred by one party to another on terms which leave some or all of the beneficial interest undisposed of.
How would you define a constructive trust?
Related Content. A trust that arises by operation of law where it would be unconscionable for a person (A) who holds an asset to deny the beneficial interest of another person in the asset. For example, a constructive trust may arise where: A holds funds that he knows have been paid to him by mistake.
What is constructive trust in family law?
A constructive trust is an equitable remedy (based on fairness) in which the court “constructs a trust” in favour of the non-owner spouse.
What is the purpose of a spendthrift trust?
A spendthrift trust protects trust property from an irresponsible beneficiary and his or her creditors. A spendthrift trust is a type of property control trust that limits the beneficiary’s access to trust principal. This restriction protects trust property from: a beneficiary who might squander trust property, and.
Is constructive trust a remedy or cause of action?
Even when the wrongdoer has no other assets and the misappropriated funds have been spent, recovery still may be had through the imposition of a constructive trust. A constructive trust is not actually a true trust, but a remedy available to a plaintiff seeking to recover specific property from another.
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.
What is a constructive trust land law?
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 remedy for unjust enrichment?
restitution
The remedy for unjust enrichment is restitution: the restoration of what was conferred to the claimant. In short, the correcting of the injustice that occurred when the claimant suffered a subtraction of wealth and the defendant received corresponding benefit.
Is the constructive trust an effective remedial tool?
Constructive trust, on the other hand, is purely a remedial institution. As the Chancellor acts in personam, one of the most effective remedial expedients at his command was to treat a defendant as if he were a trustee and put pressure upon his person to compel him to act to compel him to act accordingly.
