What is the purpose of a constructive trust?
What is the purpose of 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 or interference, or due to a breach of fiduciary duty, which is …
What are resulting and constructive trusts?
What is the difference between resulting and constructive trusts? Constructive trusts are imposed by the court as an equitable remedy where it would be unconscionable for the other party to hold onto the property. However, resulting trusts give effect to the implied intentions of the owner.
Is constructive trust a cause of action?
A constructive trust is an extraordinary remedy, not a cause of action. Instead, a constructive trust is imposed based upon an established cause of action. One such cause of action is breach of fiduciary duty, often seen in probate and trust litigation.
Is constructive trust a cause of action in California?
Constructive Trust Defined & Indem. Co. (1978) 78 Cal. “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 an implied trust in land?
An implied trust is an element of trust law, and refers to a trust that has not been “expressly created by the settlor.” There are two types of implied trust: Resulting trust. Constructive trust.
How does 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 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 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.
Do purpose trusts have beneficiaries?
A purpose trust is a type of trust which has no beneficiaries, but instead exists for advancing some non-charitable purpose of some kind. Trusts for charitable purposes are also technically purpose trusts, but they are usually referred to simply as charitable trusts. …
What is a trust of imperfect obligation?
A trust of an imperfect obligation is a trust which has no defined human beneficiary and which would, at first glance, appear to infringe the beneficiary principle since such a trust is for a purpose. These trusts are permitted to exist.
What is a discretionary trust fund?
A Discretionary Trust is a legal arrangement which allows the owner of a life policy (the settlor) to give their policy to a trusted group of people (the trustees), who look after it. At some time in the future they pass it on to some people from a group that the settlor has decided (the beneficiaries).
Are discretionary trusts a good idea?
A trust can be a very useful way of helping to provide for a child or children. One of the most popular trusts is a discretionary trust which offers a great degree of flexibility and is a particularly good way to help disabled or vulnerable beneficiaries.
How do you control trust?
Control Of Terms Of The Trust You can change the beneficiaries, the terms or conditions under which beneficiaries will receive the property in the Trust, and revoke or terminate the Trust whenever you want.
Can you change the appointor of a trust?
Subject to the trust deed, the Appointor of a discretionary trust may be able to be changed using this deed of change. This deed takes the approach of retiring all existing Appointors (including any that intend to continue as Controller) and then appointing new Appointors (again, including any wishing to continue).
