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How court-ordered constructive trusts can be beneficial

Trusts are quite often thought of in general terms; however, there are many different types of trusts available and they differ greatly depending on the type. Therefore, it is important to understand more about all of the options and benefits so that you are able to compare how constructive trusts differ to the norm.

Constructive trusts are quite different from other types of trusts because they are not created by individual people. Instead, they are created by the court in a response to a certain situation where it is believed that justice needs to be done.

Why do constructive trusts get created?

When the courts witness a case where one party has suffered as the result of another party's profitable activities, for example, a constructive trust might be ordered so that the situation can become fair and so that balance can be restored.

For example, if a person wrote a book that was highly successful because of defamatory and accusatory statements about another person, the author is likely to profit greatly because of this. However, by doing so, the author has probably also caused harm to the person that they wrote about, and they likely suffered damages such as reduced career prospects as a result. In a situation such as this, the courts might decide that a constructive trust should be set up in order to transfer some of the book profits to the victim.

If you want to learn how a constructive trust might affect you in the state of Massachusetts, an experienced attorney can help. His or her guidance and advice can prove invaluable in such circumstances.

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