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Understanding constructive trusts

Navigating the world of wills and the many different types of trusts can be overwhelming at first. But the more that you read about the different options available to you, the more you will begin to understand that the many different options will actually work in your favor, offering you flexibility, and something for every financial and personal need.

So, what are constructive trusts? Constructive trusts differ slightly from a stereotypical trust, because they are not written up by a lawyer based on the property owner's wishes. They are instead created by the courts in order to prevent a certain outcome that would be unfair or unjust from occurring.

Can I create a constructive trust based on my own needs?

You cannot create a constructive trust directly, since it is set up by the courts. However, if you are involved in a court case that is prosecuting a fraudulent person and preventing him or her from accessing wealth, then it is possible for you to start the ball rolling in creating a constructive trust in relation to that particular incident. A constructive trust can only be set into action from starting a court case first; therefore, it can take an extended period of time but can lead to extremely successful results.

What are common reasons for constructive trusts being set up?

A constructive trust might be set up because of profits made from defamation, or profits made at the expense of another.

If you would like to inquire about starting the process of pursuing a constructive trust or defending your assets, an experienced attorney can help.

Source: FindLaw, "What Is a Court-Ordered Constructive Trust?," accessed Jan. 26, 2018

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