05 Constructive and Resulting Trusts

Resulting and constructive trusts are trusts that are […] by law or imposed by courts.

implied

Resulting trusts are based on the presumed […] of the settlor.

intent

Constructive trusts are an equitable remedy used to prevent […].

unjust enrichment

What are the three types of resulting trusts?

Purchase money resulting trusts, Failure of an express trust, Incomplete disposition of assets

The three types of resulting trusts include purchase money resulting trusts, trusts arising on failure of an [..1..] trust, and trusts arising from an incomplete disposition of trust assets, also known as [..2..].

express, excess corpus

The beneficiary of a resulting trust is the […].

settlor

If the settlor of a resulting trust is deceased, the beneficiaries are their [..1..] or beneficiaries under their [..2..].

heirs, will

The purpose of a resulting trust is to carry out the settlor's […].

intent

A resulting trust on the failure of an express trust arises when the express trust is [..1..] or [..2..].

void, unenforceable

A resulting trust on the failure of an express trust arises when the beneficiary is [..1..] or cannot be [..2..].

dead, located

A resulting trust may arise if a charitable trust fails and the doctrine of […] is inapplicable.

cy pres

A resulting trust will not be implied if the trust instrument provides for the [..1..] of property after the trust fails or if the settlor received [..2..] for the transfer.

disposition, consideration

A resulting trust will not be implied if the trust was created for an [..1..] purpose or if [..2..] is applicable to a failed charitable trust.

illegal, cy pres

A resulting trust from excess corpus is implied when the trust purpose is fully [..1..] and some trust property [..2..].

satisfied, remains

A […] arises when one party (X) furnishes consideration for property, but title is taken in the name of another party (Y).

purchase money resulting trust

For a purchase money resulting trust (PMRT) to arise, consideration must be for the […] of property.

purchase

In a PMRT, the consideration must be provided at or […] title is taken by the party not providing consideration.

before

In a PMRT, the burden of proof is on the party claiming the trust to show by clear and convincing evidence that they supplied the […].

consideration

Once a party proves they supplied consideration for a PMRT, a resulting trust is presumed, but the title holder can rebut this by showing the payment was a [..1..], a [..2..], or a satisfaction of debt.

gift, loan

If the party providing consideration in a PMRT arrangement expects to be reimbursed, the relationship is a […] and not a PMRT.

loan

When the parties in a potential PMRT are closely related (e.g., parent-child), a […] is presumed instead of a trust.

gift

The presumption of a gift between closely related parties in a PMRT context is […].

rebuttable

No resulting trust arises if the parties took title for an […] purpose, though a constructive trust might be imposed.

illegal

If a transferee obtained title by wrongful means like fraud, no [..1..] trust arises, but a [..2..] trust may be imposed.

resulting, constructive

A […] resulting trust occurs when a party supplies only part of the consideration for the property.

pro rata

In a pro rata resulting trust, the trust is for a […] share of the property.

proportional

A […] is an equitable remedy imposed to prevent unjust enrichment from wrongful conduct like fraud or breach of fiduciary duty.

constructive trust

A constructive trust is not automatic and must be requested as a […] in a court action.

remedy

In many states, the standard of proof to establish a constructive trust is […] and […] evidence.

clear, convincing

To establish a constructive trust, the plaintiff must identify particular property as the trust […].

res

Proof that a defendant simply has […] is insufficient to impose a constructive trust.

assets

If property is stolen, title remains with the […].

original owner

If a thief uses stolen property to acquire other assets, the thief holds the new assets in a […] for the original owner.

constructive trust

A person who acquires property from another through [..1..], duress, mistake of fact, or [..2..] holds the property in a constructive trust for the transferor.

fraud, breach of fiduciary duty

If property acquired by fraud is conveyed to a third party who is not a […], the third party can be declared a constructive trustee.

bona fide purchaser

A person who kills another holds any property acquired from the decedent by will or intestacy in a constructive trust for whoever would have taken the property if the killer had […] the decedent.

predeceased

In some states, if a killer and victim held property as joint tenants, the killer holds a […] interest in constructive trust for the victim's estate.

one-half

A constructive trust may be imposed for a [..1..] promise or a breach of promise by someone in a [..2..] relationship.

fraudulent, confidential

A […] occurs when a will makes an absolute gift, but there's a separate agreement that the recipient will hold it in trust for another.

secret trust

To prevent unjust enrichment in a secret trust situation, a court may impose a […].

constructive trust

If a decedent breaches a promise to devise property in exchange for services, a […] may be imposed on the property.

constructive trust

A constructive trust for breach of a promise to devise property might not be granted if […] are deemed a sufficient remedy.

damages

The burden of proof to establish a constructive trust is on the […] seeking it.

party

Resulting and constructive trusts are considered […] trusts.

passive

The sole duty of the trustee of a passive trust, such as a resulting or constructive trust, is to […] to the beneficiary.

convey legal title

The trustee of an implied trust must account for [..1..] taken from the property or its fair [..2..] from the time the trust-creating events occurred.

profits, rental value

The trustee of a constructive or resulting trust does NOT have a duty to […] trust property.

invest

Actions to impress constructive or resulting trusts are actions in […], so equitable principles like "unclean hands" apply.

equity

The equitable principle that "he who seeks equity must […]" applies to actions involving constructive and resulting trusts.

do equity

In the context of implied trusts, "doing equity" might require a beneficiary to […] the trustee for good faith expenditures on the property.

reimburse

The rule that an "adequate remedy at law" bars equitable relief generally […] to constructive or resulting trust actions.

does not apply

The "adequate remedy at law" defense may apply in constructive trust cases for breach of an oral promise to make a [..1..] or to hold property purchased at a [..2..] for another.

will, foreclosure sale