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What does: Constructive trust mean?

Updated: 9/27/2023
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15y ago

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A constructive trust is an equitable remedy similar to a trust imposed by a court to benefit a party that has been wrongfully deprived of its rights due to either a person obtaining or holding legal right to property unjustly. A constructive trust is not a trust, in the true meaning of the word, in which the trustee is to have duties of administration over a period of time, but rather it is a passive, temporary arrangement, in which the trustee's sole duty is to transfer the title and possession to the beneficiary.

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Q: What does: Constructive trust mean?
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Definition of constructive grant?

This is usually called a constructive trust and is given by a court to a person who has been deprived of their rights. The settlement is held in trust by the court.


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A constructive trust is not one that is created by an individual. It is not a trust (express trust) in the true meaning of the term. It is a trust created by a court as a remedy when it decides that an individual is holding title to property unfairly. It treats the defendant as though it had been the trustee of an express trust. The court then compels the defendant to convey title to the property to the rightful owner. You can read more about constructive trusts at the link below.


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