Estate Planning Newsletter

• The Uniform Transfers to Minors Act
  Minors have no legal capacity to manage property. Thus, transferring property and other assets to minors can be problematic. For example, parents or other adults may wish to convey a small amount of property to a minor without investing... Read more.
• Life Insurance Benefits
  There are numerous uses for life insurance. Some are obvious; others are very creative. Some of the most common uses include paying estate taxes, estate administration, inheritance equalizing and many others. Estate Taxes... Read more.
• Avoid the Reciprocal Trust Doctrine When Creating Life Insurance Trusts
  Estate planning attorneys utilize a number of different estate planning techniques to accomplish the goals of their clients and sometimes to minimize transfer taxes. One common estate planning technique is the transfer of assets into an... Read more.
• Tax Issues Related to Contaminated Property
  The Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA) imposes liability for the investigation and cleanup of contaminated real property without regard to whether the landowner created or allowed the... Read more.

• New Treasury proposal would hammer wealthy investors using clever tax strategies
• Proposed Clawback Regs May Undermine Some Estate Planning
• 6 tax strategies for wealthy clients
• 67% of Americans have no estate plan, survey finds. Here’s how to get started on one
• Americans Don’t Want to Talk About Their Generational Wealth

Facts About Resulting Trusts

There may be instances where property under a trust is transferred to the wrong beneficiary. This transfer can be corrected through a remedy called a resulting trust or an implied trust. Do not confuse a resulting trust, which is created by the court to remedy some error, from an express trust, which is a trust expressly created by a person (the trustor or settlor) who designates a trustee to manage assets or property for the benefit of trust beneficiaries.

When a Resulting Trust Is Imposed

A resulting trust is typically imposed by a court, and may occur under any of the following situations:

• Failure of an express trust (due to unclear intentions or inherent illegality)
• A need to determine who is to receive property that remains after an express trust has been administered and property has been distributed
• A person acquires property that was not meant to be a gift to him/her

Distinguishing Characteristics

Resulting trusts are different from other trusts, in that they are:

• Involuntary – Imposed by law, rather than being voluntarily created.
• Not a Constructive Trust – Imposed because of a good faith error, instead of the fraudulent transfer or undue influence that characterizes constructive trusts.

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