How are constructive trusts different from other trusts?

On Behalf of | Apr 26, 2018 | Trusts |

When planning your estate, it is likely that you have considered creating a trust to hold your assets in your lifetime and beyond. All of the different types of trusts can be very confusing, especially to a person who is just starting to plan his or her estate. Therefore, it is important that a person planning his or her estate takes the time to learn about the different types of trusts that are available, and what benefits they can provide.

A constructive trust is not like most other types of trusts. They are not created with the help of a lawyer, but instead they are ordered by a court.

Why are constructive trusts ordered by courts?

Constructive trusts are ordered by courts with the intent of preventing a person from gaining assets at the expense of another. An example of this could be an instance when a person writes a book with defamatory statements about another. As a result, the victim may suffer in regard to his or her career prospects and reputation, whereas the author will gain a profit. A legal antidote to this could be the victim filing for a court-ordered constructive trust in order to recover damages through the book’s profits.

It is possible to have a constructive trust set up in many different situations, not just in a defamation case. The situation could be linked to fraud, theft or violent crime.

If you want to know more about the applications of court-ordered constructive trusts in Massachusetts, it is important to conduct extensive research and find out if they could work well in your situation.

Source: FindLaw, “What Is a Court-Ordered Constructive Trust?,” accessed April 26, 2018


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