Remedy for Fraudulent Transfers of Property

A constructive trust is a remedy imposed by a court when a person has wrongfully attained property in an inappropriate way. The court will undo the transaction and order that title to the property go to the rightful owner.

Types of Wrongful Conduct

Any wrongful activity that leads to the unfair obtainment of property may be cause for a constructive trust, including:

• Fraud (including forgery)
• Theft (including embezzlement)
• Accident
• Mistake
• Undue influence
• Violation of fiduciary duty (for example, where a partner purchases property in his own name rather than in the name of the partnership)

Factors

In order for a constructive trust to be created, the following factors must exist:

• Fraudulent representations or concealment of important and material information, or breach of trust
• Acts such as transfer of property as a result of the fraud or breach
• Profit and/or unjust enrichment as a result of fraudulent representation or concealment of important and material information

Remedy Under Constructive Trusts

A constructive trust is imposed when an affected party initiates a lawsuit requesting relief. It typically provides that the property pass from the wrongful owner to the rightful owner.

However, if the unlawful owner has damaged or destroyed any of the property, the rightful owner is entitled to a money judgment for the value of the property.

© 2020 NextClient.com, Inc. All rights reserved.

• Facts About Resulting Trusts
  There may be instances where property under a trust is transferred to the wrong beneficiary. This transfer can be corrected through a remedy called a resulting trust or an implied trust. Do not confuse a resulting trust, which is... Read more.
• Conservators Appointed by the Court to Manage the Affairs of Others
  A “conservator” is a court-appointed individual assigned to handle the daily affairs of those who cannot care for themselves due to physical or mental limitations (the “conservatee”). Conservatorships are... Read more.
• Life Insurance Benefits
  There are numerous uses for life insurance. Some are obvious; others are very creative. Some of the most common uses include paying estate taxes, estate administration, inheritance equalizing and many others. Estate Taxes... Read more.
• Avoid the Reciprocal Trust Doctrine When Creating Life Insurance Trusts
  Estate planning attorneys utilize a number of different estate planning techniques to accomplish the goals of their clients and sometimes to minimize transfer taxes. One common estate planning technique is the transfer of assets into an... Read more.

• 4 Ways To Prepare Children Now To Oversee Their Inheritance Later
• https://www.cnn.com/2020/06/26/entertainment/netflix-enola-holmes-sherlock-lawsuit-scli-intl-gbr/index.html
• Estate Planning In Deflationary Times
• Estate Planning for Business Owners
• Understanding Digital Assets And Their Importance In Your Estate Planning