Also known as: implied trusts · resulting trust · constructive trust
Written by attorneys · grounded in primary & secondary sources — see below
An equitable device by which a court imposes fiduciary obligations on the holder of legal title to property for the benefit of another. The device prevents unjust enrichment when legal title would otherwise produce an inequitable result. Courts impose the device on the basis of the parties' conduct or the circumstances of acquisition rather than any express declaration of trust.
Ike Ingram and his wife held their home as tenants by the entirety. While divorce proceedings were pending, Ike executed a will attempting to leave the home to his sister Iris Irons. Ike died before the divorce was final and the tenancy remained intact. Title passed automatically to his surviving spouse by operation of law. Equity refused to impose an implied trust on the home for Iris because no wrongful conduct or unjust enrichment occurred.
Ivy Ibarra and her partner lived together for several years. Ivy contributed unpaid labor and savings to a catering business operated under her partner's name. After the relationship ended, Ivy sought a share of the business under equitable theories. The court recognized an implied trust arising from the parties' conduct and economic interdependence during cohabitation.
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Integrity Partners formed a joint venture to develop a property. One partner secretly acquired an adjacent parcel that would have benefited the venture. The partner attempted to retain the parcel for personal profit. Equity imposed an implied trust requiring the partner to hold the parcel for the benefit of the venture.
Isla Ireland and her partner pooled resources to build a software application while living together. The application and LLC were placed solely in the partner's name. After separation, Isla sought an interest based on her contributions and their shared economic plan. The court allowed equitable relief including an implied trust to prevent unjust enrichment.
A former government employee signed an agreement requiring prepublication review of manuscripts. The employee published without review and retained profits from the book. Equity imposed an implied trust on the profits to enforce the contractual obligation and prevent unjust enrichment.
An implied trust arises by operation of law from the parties' conduct or circumstances to prevent unjust enrichment. An express trust requires an intentional declaration by the settlor. Courts impose the implied device without any writing or formal creation when equity demands it.
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A court will refuse when the property passes by operation of law through survivorship and no wrongful conduct or unjust enrichment is shown. The device does not override intact tenancies by the entirety merely because a will attempts a different disposition.
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Yes. Courts recognize implied trusts when one party contributes labor, funds, or other value to an enterprise under circumstances creating reasonable expectations of shared ownership. The device prevents unjust enrichment when the titled party retains all benefits after the relationship ends.
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…The first, for declaratory relief, asks the court to determine her contract and property rights; the second seeks to impose a constructive trust upon one half of the property acquired during the course of the relationship. Defendant demurred unsuccessfully, and then answered the complaint. (2) (See fn. 2.) Following extensive…