New York Constructive Trusts
Frequently Asked Questions
Frequently Asked Questions about Constructive Trusts in New York State
A constructive trust is a court imposing a trust on property held by one person for the benefit of someone else when there is no written agreement.
A constructive trust is a fraud rectifying remedy, meaning it is used to prevent someone from keeping an interest in property that they should not have.
New York has four elements to show a constructive trust exists. (1) a close trusting relationship between the parties, (2) a promise either express or implied, (3) a transfer made in reliance on that promise (4) unjust enrichment
A constructive trust is imposed by commencing a lawsuit against the person who has the property in their name. At the conclusion of the case, which often requires a trial, the court will determine if a constructive trust should be imposed.
A constructive trust is an extremely flexible standard and is designed to be applied based on the specific facts for each case.
The first line of defenses are showing the constructive trust does not apply. The second line of defenses are affirmative defenses, such as the statute of limitations.