Constructive And Resulting Trusts: What They Are And Why They Matter

When most people hear the word trust, they picture a financial planning tool catered to the wealthy. However, in Canadian law, two special types of trusts are relevant among a wide array of individuals. These are known as constructive and resulting trusts.

Unlike traditional trusts that are planned and prepared in advance, constructive and resulting trusts are imposed by courts as remedial measures once a dispute arises. These trusts are used to ensure fairness and equity within our justice system.

Constructive Trusts

A constructive trust is ordered when the court decides that one party to an action will be unjustly enriched at the other party's expense. For example, in Pettkus v. Becker,¹ Ms. Becker and her significant other were in a common-law relationship for nearly 20 years. During this time, Ms. Becker invested her time, effort, and own income into a beekeeping business she built with her partner. All property and assets associated with the business