Estate Planning Newsletter

• Management & Distribution of Property After Death
  When a person dies, a personal representative must be appointed to manage and distribute the decedent’s estate. Types of Personal Representatives A personal representative is any of the following:... Read more.
• Calculating Fair Market Value for Charitable Donations of Property
  The U.S. government has long encouraged citizens to contribute to charity. One method of encouraging philanthropic giving is the allowance of deductions from income for federal tax purposes for donations to “qualified”... Read more.
• The QDOT and Non-Citizen Spouse
  A QDOT is a specific type of marital deduction trust that is designed to ensure that non-citizen spouses will eventually pay any taxes that may be due upon distribution of the principal from the trust, even if the surviving spouse... Read more.
• Estate Valuations and Federal Estate Taxes
  Assets owned by a person at the time of their death, whether real or personal property, is commonly referred to as the decedent’s “estate.” After the person dies, the property or proceeds from the sale of such property... Read more.

• How To Fix An Expensive Estate Planning Mistake
• The Best Estate Plan For Most Married IRA Owners After The SECURE Act
• Financial And Estate Planning Steps To Take Now: Special Considerations For Those With Brain Disease
• What The Wealthy Are Doing With Their Estate Planning During The Covid-19 Crisis
• Lawyers address problems with estate-planning document signing during coronavirus crisis

Remedy for Unjust Obtainment of Property

A constructive trust is a remedy imposed by the court when a person has wrongfully attained property. The court basically takes the property away from the wrongful owner and puts it in trust for the rightful owner. In the estate planning/administration context, a constructive trust is usually imposed when there is wrongful conduct on the part of the trustee or beneficiary.

Types of Wrongful Conduct

Any wrongful activity that leads to the unfair acquisition of property may be cause for a constructive trust, including:

• Fraud
• Accident
• Mistake
• Undue influence
• Violation of trust or fiduciary duty (for example, when a trustee purchases property in his own name rather than in the name of the beneficiary)
• Homicide (for example, to obtain life insurance benefits)

Remedy Under Constructive Trusts

A constructive trust is imposed by a court as a result of a complaint by an affected party (typically a trustor or beneficiary of a trust). It may provide that the property pass from the wrongful owner to the rightful owner, or it may provide for the property to be held by a trustee for the rightful beneficiary.

However, if the unlawful owner has damaged or destroyed any of the trust property, the rightful owner is entitled to a money judgment for the value of the property.

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