Also known as: trusts in invitum · constructive trust · involuntary trust
Written by attorneys · grounded in primary & secondary sources — see below
An equitable remedy by which a court declares that a person who holds legal title to property must convey it to another because retention would constitute unjust enrichment. The remedy arises when property is acquired through wrongful conduct such as fraud, breach of fiduciary duty, or other inequitable means, or when circumstances otherwise demand that conscience require transfer to the rightful owner.
Owen and Maria held their farmhouse as tenants by the entirety. During divorce negotiations Owen executed a will leaving the farm to his nephew Leo. Owen died while still married and before any severance. Maria took full title by operation of law. Leo's claim that equity should impose a trust in invitum on Maria fails because Maria engaged in no wrongful conduct or unjust enrichment.
Decedent repeatedly expressed intent to execute a new will benefiting plaintiffs but defendants used misrepresentations, undue influence, and force to prevent execution. After the existing will was probated, plaintiffs sought relief. Equity imposed a trust in invitum on the defendants, requiring them to hold the property for plaintiffs as the intended beneficiaries.
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A corporation obtained funds through a pattern of racketeering activity. The injured plaintiff sought recovery of those funds. A trust in invitum was available as a remedy to prevent the corporation from retaining the ill-gotten gains.
Corporate officers sold shares on inside information without disclosure. The corporation sought recovery of the profits. Equity imposed a trust in invitum on the officers, requiring them to account for and surrender the trading gains obtained through breach of duty.
A corporate officer learned of a business opportunity through his position and took it for himself without offering it to the corporation. The corporation sued. A trust in invitum was imposed on the officer, requiring him to hold the opportunity and resulting profits for the corporation's benefit.
A partner acquired a lease renewal opportunity in his own name while managing the partnership's hotel. The co-partner sued. Equity imposed a trust in invitum, requiring the acquiring partner to hold the lease for the benefit of the partnership.
A court will refuse to impose a trust in invitum when the surviving spouse engaged in no wrongful conduct or unjust enrichment and the tenancy by the entirety remained intact at death. Title passes by operation of law to the survivor, and a will cannot dispose of the nonprobate property.
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A trust in invitum is imposed by equity to prevent unjust enrichment regardless of the parties' intent. An express trust arises from the settlor's manifested intention to create a trust relationship.
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Yes. When a testator is prevented by fraud, undue influence, or force from executing a new will favoring certain beneficiaries, equity may declare that those who take under the probated will hold the property as constructive trustees for the intended beneficiaries.
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No. The remedy is imposed by operation of law to prevent unjust enrichment and does not depend on any agreement or intention to create a trust.
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…The first, for declaratory relief, asks the court to determine her contract and property rights; the second seeks to impose a constructive trust upon one half of the property acquired during the course of the relationship. Defendant demurred unsuccessfully, and then answered the complaint. (2) (See fn. 2.) Following extensive…