A constructive trust is a legal remedy imposed by the court when a person has wrongfully acquired property in an unjust manner. It is often applied in cases involving:
The Alberta courts use constructive trusts to prevent wrongful gain by requiring the benefiting party to hold the property for the rightful beneficiary.
The courts have broad discretion in imposing constructive trusts, considering factors such as:
A constructive trust does not serve as a punishment but ensures fairness. The trustee must manage the property responsibly, while the beneficiary has the right to reclaim their share.
Resulting Trust
A resulting trust arises when a person contributes to the purchase of property, but it is registered in another person’s name. The law presumes that the contributing party intended to retain an interest in the property, and the registered owner holds it in trust for them.
The Alberta courts may impose a resulting trust when:
The primary focus in a resulting trust case is the intention of the parties at the time of the transaction. If a resulting trust is established, the trustee must transfer the property back to the contributing party.
Differences Between Constructive Trust and Resulting Trust
Legal Assistance
Constructive and resulting trusts play a crucial role in Alberta’s legal landscape, ensuring fairness in property disputes. Understanding these trusts can help individuals protect their rights and navigate complex legal issues related to property ownership.
Contact our legal experts to ensure that your property interests are properly protected under Alberta law.
Please reach us at info@lawsnbeyond.com if you cannot find an answer to your question.
A constructive trust prevents unjust enrichment by ensuring that someone who wrongfully acquires property holds it for the benefit of the rightful owner.
A resulting trust is imposed when a person contributes to purchasing property, but ownership is registered under another person’s name without clear intention to gift the property.
Courts examine financial contributions, the relationship between parties, the intention behind the transaction, and any evidence of wrongful conduct.
Yes, constructive trusts are commonly used in family law disputes, especially in cases involving common-law relationships where one partner contributes significantly to an asset but is not legally recognized as an owner.
If a trust is imposed, the trustee must manage or transfer the property according to the court’s decision, ensuring fairness for the beneficiary.
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