A trust that is created by operation of law when someone obtained legal title to property through fraud is called a
A) pour-over trust.
B) precatory trust.
C) resulting trust.
D) constructive trust.

Question

Quizplus · Accepted Answer

A constructive trust is a trust that is created by operation of law to prevent unjust enrichment. It arises when someone obtained legal title to property through fraud, misrepresentation, or some other form of unfair conduct. The trust is “constructed” to impose a duty on the title holder to hold the property for the benefit of the person who was wronged. The purpose of the constructive trust is to prevent the title holder from profiting from their wrongdoing and to restore the property to its rightful owner.

A Trust That Is Created by Operation of Law When