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Constructive Trust

A constructive trust, which is similar to a trust, is an alternative solution imposed by a court to help a person who has been deprived of their title to a property. This is usually because someone else has laid legal claim over the same property through unfair enrichment. There are several laws that apply to how a constructive trust should be set up. Given below are a few questions answered by the Experts on issues related to constructive trusts.

In Texas, if both the husband and wife die, can the 120 rule affect the creation of a constructive trust, and can the heirs gain their community property if there are no children involved?

According to the TEX PB. CODE ANN 47 the survival for 120 hours rule is related to heirship. The 120 rule deals with understanding which party survives the other party for beneficiary purposes. Since both the parties have died, this does not apply here. This, however, does not stop the constructive trust, from being created and the whole estate will be liable in this case.

In New York what can an individual do if they believe that a family member has stolen their share of municipal bonds?

The individual may have the right to sue this person and force a constructive trust towards the bonds or their earnings if they have already been sold. If the individual chooses to file a lawsuit, they can subpoena the family member to bring the bonds to a trial or deposition. The individual will need to keep in mind that there could be a statute of limitations in the case. If the time limit for taking the case to trial has already passed, trying to get the court to force a constructive or resulting trust may be the only option available.

In California, if a trustee violates their responsibility for using constructive trust possessions what is the punishment for this and would they be required to return the money to the constructive trust?

If the trustee violates their responsibility, they can lose their position as a trustee, be forced to return any amount that was taken from the constructive trust, pay for any damages that were caused because of the violation, and also face criminal charges depending on the extent of their violation.  

If an individual has passed away in Trinidad and Tobago where they had property in the name of their child, upon their death, will their spouse have any right to the property since there was no will involved?

In this case, the Trinidad and Tobago law will control the decision. Since the property was deeded to the child it would mean that the child becomes the owner of the property. However, it may be possible for a constructive trust to be created for the property. But this can only happen if the child does not fight for the property and allows the living parent to get rent from the property or receive the proceeds from the sale of the property. If you choose to create a constructive trust, you will need a witness to be present. The witness will have to show that the property was kept in the trust for the living parent by the child. To avoid any confusion, this would need to be in writing.

When an individual has property of their own, very often, they may want to protect it with a constructive trust. However, there are several rules that govern the setting up of constructive trusts and you may need a better understanding of the topic to see what applies to your situation. Put your questions on constructive trusts to Legal Experts now for information that can help you tackle your problem smoothly and efficiently.

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