Resulting Trusts And Constructive Trusts

Front 1

A ____________ is an implied-in-fact trust and is based on the presumed intent of the parties.

Back 1

"Resulting."

If a resulting trust is decreed by the court, the resulting trustee will transfer the property to the settlor if alive or to the settlor's estate (ie. to residuary devisees if any, or to intestate takers).

Front 2

When does a resulting trust arise?

Back 2

1) When a private express trust ends by its own terms and there is no provision for what happens afterward. 2) When a private express trust fails because there is no beneficiary. 3) When a charitable trust ends by impossibility or impracticability and cy pres does not apply. 4) When a private express trust fails because it is illegal after creation. 5) When there is excess property in a private express trust. 6) In a "purchase money resulting trust" (A pays B to transfer title to C). 7) Semi-secret trusts (a will makes a gift to a person as trustee but does not name the beneficiary).

Front 3

What is a constructive trust?

Back 3

A trust created by the court as a remedy to prvent fraud or unjust enrichment. The wrongdoer has one obligation: to transfer property to the intended beneficiary as determined by the court.

Front 4

When does a constructive trust arise?

Back 4

1) When a trustee of a private express trust or charitable trust makes a profit through self-dealing; 2) When there is fraud in the inducement or undue influence regarding a will; 3) When there is a secret trust in a will; 4) oral real estate trusts.

Front 5

A semi-secret trust is where a _______ on its face makes a gift outright to A, but the gift is given on the basis of an oral promise by A to use the property for B.

Back 5

"Will."

Front 6

Is parol evidence admissible to show the beneficiary of a semi-secret trust?

Back 6

Yes.

Front 7

Where S tells A "If I transfer Blackacre to you by deed, will you hold it for the benefit of B" and A agrees, what are the three situations where A cannot invoke the Statute of Frauds to keep the property for himself?

Back 7

1) Where there is a fiduciary relationship between S and A. A will have to turn the property over to B.

2) Where there was fraud in the inducement on A's part. A must turn over property to B.

3) There was detrimental reliance by B, the intended beneficiary. Look for B taking possession and making improvements (though possession alone is not enough).