Understanding Constructive Trusts: Key Concepts and Grounds for Imposition

Jan 05, 2026

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Constructive trusts serve as an equitable remedy to prevent unjust enrichment when legal ownership does not align with equitable interests. Unlike traditional trusts, the Trust Code does not apply. A person seeking to impose a constructive trust must formally request it, demonstrating that the bad conduct in question is linked to the property in question. Grounds for imposing a constructive trust include fraud, abuse of a confidential relationship, promises made in contemplation of death, and any other detrimental conduct deemed deserving of the remedy by the court.

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Understanding Constructive Trusts: Key Concepts and Grounds for Imposition

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Constructive Trusts
Basic Concepts • Equitable remedy to prevent unjust enrichment. • Trust Code does not apply. • Person seeking must request. • Bad conduct must have nexus to property.
Grounds to impose constructive trust • 1. Fraud • 2. Abuse of confidential relationship • 3. Promises made in contemplation of death • 4. Any other evil conduct which the court finds merits the remedy.