Implied trusts are created by operation of law, or without any sort of intentional act by the settlor, or the person establishing the trust. A common type of implied trust is a constructive trust, which occurs when a person obtains title to property, usually in an unfair or dishonest manner, and the court finds that a constructive trust exists as a matter of law. In this sort of situation, the constructive trustee is holding the assets in trust for their rightful owner, and he or she has an equitable and legal duty to transfer the property accordingly. Thus, a constructive trust is a type of implied trust that is established solely to remedy some sort of wrongful taking of title, which typically occurred as a result of illegal or fraudulent behavior.
An implied trust can be contrasted with an express trust, which occurs when a settlor takes some intentional or affirmative action to create a trust with certain provisions for the distribution of assets to intended beneficiaries. Another way of looking at an implied trust is to characterize it as a trust that has arisen from the presumed or unintended actions of a settlor. While an implied trust might not meet all of the requirements to qualify as a legally binding express trust, the consensus still will be that the settlor at least impliedly intended to create the trust, at least to some degree.
Getting Legal Help
Courts in different jurisdictions will treat implied trusts differently, so it is wise to check with an attorney for legal advice about the effectiveness and consequences of implied trusts. Where there has been an allegation of fraud or illegal behavior that has result ed in an implied trust, you should immediately contact an attorney for advice and guidance, no matter how you are involved in the situation.
