A resulting trust is a trust created by a judge. Resulting trusts are created because the intended beneficiaries are no longer available. In such instances, a resulting trust is created to return the property from the trustee back to the settlor.
Judges may enforce resulting trusts in the following situations:
If the settlor dies, then the court will typically issue a resulting trust. The resulting trust will likely make distributions to the settlor’s estate or heirs. The trust property becomes part of the deceased settlor’s estate, and the resulting trust operates like a will.
Resulting trusts prevent trustees or beneficiaries from illegally holding property for the settlor. Settlors may request that the property be returned, but trustees or beneficiaries are entitled to continue holding the property. In some cases, a defense may be available for the trustee and the resulting trust will not be issued.
Some equitable defenses to a resulting trust order include:
Settlors can also waive their right to a resulting trust if they act illegally:
Yes. Resulting trusts are powerful remedies that are enforceable according to the trust laws of your state. It would be to your benefit to contact an estate planning lawyer for advice if you are involved in a dispute over a resulting trust. Laws governing trusts vary by state, and an experienced estate lawyer can help you in your course of action.
Last Modified: 03-23-2015 02:33 PM PDTLaw Library Disclaimer
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