Constructive Trust 

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Guide to Constructive Trust

Use a constructive trust to impose the return of assets obtained illegally

By Patti Richards, Free Lance Writer, PGWRites Communications

A constructive trust is a trust imposed by law when needed to bring about a just result. A constructive trust is a temporary arrangement set in motion by the courts to handle property interference or someone who obtained property illegally. A constructive trust is not a trust where the trustees have certain duties to fulfill on behalf of the trust. A constructive trust results when an individual fails in their fiduciary duty to the beneficiaries or in the execution of their duties.

An example of a constructive trust is when individuals divorce and fail to change the beneficiaries on certain documents, like life insurance. When the individual dies, a judge imposes a constructive trust to hold the party accountable for what they do with money or assets they are not entitled to receive and to force the return of assets to the appropriate party. Use a constructive trust to:

1. Return assets to the appropriate parties through a constructive trust.

2. Hold parties in a trust dispute accountable for what they do with money or assets not intended for them.

3. Obtain help by law to receive money and assets due to beneficiaries.

Action Steps
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Find constructive trust information from constructive trust specialists

A constructive trust is a complex estate-planning tool imposed by a judge. Getting the right constructive trust advice means better constructive trust management and appropriate control over trust assets for the benefit of your loved ones.

I recommend: Use Attorneyfind.com by clicking on your state and "Trusts and Estates" in the practice area field to find trust experts near you. Try Legalmatch.com by clicking on "Estate Lawyers" and answering the prescreening questions to find trust experts in your area.

Research constructive trusts for constructive trust information

Constructive trusts are implied trusts imposed by law, so there is no option to create constructive trust documents on your own. If you find yourself in a situation where property you own is in the hands of another individual, a constructive trust imposed by a judge will help bring about the right result.

I recommend: Read more about constructive trusts and their uses at FreeAdvice.com. Also, check out the Divorce Law Journal Kentucky for an example of a case involving a constructive trust.

Work with a constructive trust expert to determine if a constructive trust is right for you

During life's most difficult moments, getting the right answers before you need them is priceless. Constructive trusts can be confusing without the right expert services on your side. Choosing a qualified trust and estate attorney takes the worry out of making the right choices for your particular situation.

I recommend: White and Williams in the Eastern US and Vorys, Sater, Seymour and Pease in the East and Midwest have large estate planning and trust divisions to answer all your trust questions.

Tips & Tactics

Helpful advice for making the most of this Guide

  • •  A constructive trust is a trust by law that helps resolve a situation where the proper distribution of property or assets at the time of death is in question. A request for this type of trust comes from an attorney of your behalf or by a judge during the process of carrying out the terms of a trust or a will.
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Guide author

Constructive Trust

Use a constructive trust to impose the return of assets obtained illegally.
A constructive trust is a trust imposed by law when needed to bring about a just result. A constructive trust is a temporary arrangement set in motion by the courts to handle property interference or someone who obtained property illegally. A constructive trust is not a trust where the trustees have certain duties to fulfill on behalf of the trust. A constructive trust results when an individual fails in their fiduciary duty to ... Read more