Understanding Constructive and Resulting Trusts: Key Differences and Legal Implications

In the realm of trusts and property law, two types of trusts often arise in legal disputes: constructive trusts and resulting trusts. Understanding the nuances between these two concepts is essential for anyone navigating property law or seeking remedies for unjust enrichment or breach of trust.

What is a Constructive Trust?

A constructive trust is a remedy imposed by operation of law to address situations of wrongdoing, such as fraud, breach of fiduciary duty, or unjust enrichment. It arises when one party wrongfully obtains or retains property that should belong to another party. The primary purpose of a constructive trust is to prevent the unjust enrichment of the person who has wrongfully acquired the property or asset.