What type of trust is generally used as a remedial device against injustice?

Prepare for the Delaware Wills and Trusts Test. Utilize flashcards and multiple-choice queries, with each question offering hints and clarifications to help you excel in your exam!

The correct answer is the constructive trust. A constructive trust is recognized as an equitable remedy imposed by a court to prevent unjust enrichment or to remedy situations where one party has wrongfully obtained or holds property. In other words, when someone holds property under circumstances that make it unfair for them to keep it, the court can establish a constructive trust. This form of trust aims to ensure that the property is returned to the rightful owner or that the benefits derived from that property are shared or distributed correctly, thus addressing a situation of injustice.

Understanding the role of a constructive trust is vital, as it showcases the legal system's willingness to step in and correct inequities that arise outside traditional contractual obligations or estate planning instruments. This is particularly significant in cases involving fraud, breach of a fiduciary duty, or other wrongful acts where the intention to create a trust did not exist but where justice demands a remedy.

In contrast, the other types of trusts listed have different purposes. A resulting trust occurs when property is transferred under circumstances that imply the transferor did not intend to gift the property fully. An honorary trust is designed for a particular purpose but lacks a definite beneficiary, while a charitable trust is established for charitable purposes and typically provides tax benefits. Each of these serves distinct

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy