Legal Definition and Related Resources of Constructive Trust

A constructive trust is raised by a court of equity wherever a person , clothed with a fiduciary character , gains some personal advantage by availing himself of a situation as trustee . It is not a trust created by the intentional act of the settler of the trust but one that is raised by implication by a Court of Equity. The doctrine of constructive trust is a remedial device created by the court to compel a person who holds legal title to property , subject to an equitable duty to convey to another, to do so because he would be unjustly enriched if he were permitted to retain the property. A constructive trust is different from a resulting trust which is based upon the presumed or inferred intent of the settlor of the trust whereas the constructive trust is imposed upon parties without regard to their intent.

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Constructive Trust in Historical Law

You might be interested in the historical meaning of this term. Browse or search for Constructive Trust in Historical Law in the Encyclopedia of Law.

Search for legal acronyms and/or abbreviations containing Constructive Trust in the Legal Abbreviations and Acronyms Dictionary.

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Mentioned in these terms

Involuntary Trust, Trust.

English Legal System: Constructive Trust

In the context of the English law, A Dictionary of Law provides the following legal concept of Constructive Trust : A *trust imposed by equity to protect the interests of the beneficiaries when a trustee or some other person in a fiduciary relationship gains an advantage through his position. It differs from an *implied trust in that no reference is normally made to the expressed or presumed intention of the parties. English law at present recognizes only the institutional constructive trust. This is a trust that automatically comes into being when certain circumstances arise; for example, when a person in a fiduciary position makes an unauthorized profit or when a stranger meddles in a trust. The concept is frequently used in commercial cases but not exclusively so. In a domestic setting, a constructive trust arises when a sole legal owner of property tries to exclude the rights of another person (usually a cohabitee) who has contributed to the purchase price of the property on the understanding that ownership of the property is to be shared, or when the sole legal owner tries to deny an express agreement to share ownership of the property. Other Commonwealth jurisdictions recognize a remedial constructive trust: a trust imposed at the discretion of the court to remedy an injustice. This is not accepted by English courts, although recent case law has suggested that a development in this area is possible.

Concept of Constructive Trust in the context of Real Property

A short definition of Constructive Trust: A trust created by operation of law to change an inequitable situation. If one acquires title to property through fraud, the court will hold that the legal owner holds in trust for those who really should have ownership. Also called an involuntary trust.

Concept of Constructive Trust in the context of Real Property

A short definition of Constructive Trust: A trust created by operation of law to change an inequitable situation. If one acquires title to property through fraud, the court will hold that the legal owner holds in trust for those who really should have ownership. Also called an involuntary trust.