Estate Planning Newsletter

The 'Good Faith' Implied Trust

There may be instances where property under a trust is transferred to the wrong beneficiary. This transfer can be corrected through a remedy called a resulting trust or an implied trust. Do not confuse a resulting trust, which is created by the court to remedy some error, from an express trust, which is a trust expressly created by a person (the trustor or settlor) who designates a trustee to manage assets or property for the benefit of trust beneficiaries.

When a Resulting Trust Is Imposed

A resulting trust is typically imposed by a court, and may occur under any of the following situations:

• Failure of an express trust (due to unclear intentions or inherent illegality)
• A need to determine who is to receive property that remains after an express trust has been administered and property has been distributed
• A person acquires property that was not meant to be a gift to him/her

Distinguishing Characteristics

Resulting trusts are different from other trusts, in that they are:

• Involuntary – Imposed by law, rather than being voluntarily created.
• Not a Constructive Trust – Imposed because of a good faith error, instead of the fraudulent transfer or undue influence that characterizes constructive trusts.

© 2026 NextClient.com, Inc. All rights reserved.

• Does a Killer have Rights to a Victim's Property?
  If a person murders a relative, is he/she entitled to receive any of the victim’s property? In most cases, the answer would be “no.” Usually, a convicted killer cannot inherit a victim’s property, even if he/she is a rightful... Read more.
• Making Charitable Bequests with Non-U.S. Assets
  Taxpayers who make contributions to qualified charitable organizations are entitled to a tax benefit in the form of a charitable deduction on their income taxes. However, the issue becomes more complex when a non-U.S. citizen makes a... Read more.
• Conservatorships to Manage the Affairs of the Incapacitated
  A “conservator” is a court-appointed individual assigned to handle the daily affairs of those who cannot care for themselves due to physical or mental limitations (the “conservatee”). Conservatorships are governed by state law,... Read more.
• Special Powers of Appointment
  What is a Power of Appointment? A power of appointment is the power given by one person to another (referred to as the “holder” of the power of appointment) to designate who is to receive an asset. For... Read more.

• Kanye West Loses Bid to Limit Claims in Lawsuit Over $57 Million Malibu Home
• Siblings Alleging Abuse by Michael Jackson Challenge Arbitration in Beverly Hills Court
• US to Pause Immigrant Visa Issuances for Nationals of 75 Countries Starting January 21
• George Jones’ Widow Countersued by Ex-Boyfriend Amid Dispute Over Alleged Cryptocurrency Theft
• L.A. Reid Reaches Settlement With Drew Dixon on Eve of Federal Trial