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.

© 2025 NextClient.com, Inc. All rights reserved.

• Obligations of a Guardian
  In certain cases, a minor may need to be assigned a legal guardian either because a parent is not able to care for the minor, or because the existing guardian is not competent. When a guardian is appointed, he/she will have the same... Read more.
• When a Decedent's Killer is Also an Heir
  If a person murders a relative, is he/she entitled to receive any of the victim’s property? In most cases, the answer would be “no.” Usually, a convicted killer cannot inherit a victim’s property, even if he/she... Read more.
• When a Marital Settlement Agreement Requires Life Insurance
  Many marital settlement agreements require one party to maintain a life insurance policy on his or her life naming the former spouse as the primary beneficiary. While this provides some financial security for the former spouse, it may... Read more.
• The Uniform Transfers to Minors Act
  Minors have no legal capacity to manage property. Thus, transferring property and other assets to minors can be problematic. For example, parents or other adults may wish to convey a small amount of property to a minor without investing... Read more.

• Google to Pay $30 Million to Settle YouTube Children’s Data Privacy Lawsuit
• FTC Sues Key Investment Group for Allegedly Skirting Ticketmaster Rules on Taylor Swift Ticket Sales
• Young Thug Wins Court Ruling for Return of Cash, Cars, and Jewelry Seized in YSL Case
• Louisiana Attorney General Sues Roblox Over Alleged Child Exploitation and Safety Failures
• “Ketamine Queen” Pleads Guilty in Matthew Perry Overdose Case