What is an Implied Trust?

An implied trust is a trust that is created by operation of law, rather than by an express declaration of the trust terms. It arises from the circumstances of a transaction and is inferred from the conduct of the parties involved.

An example of an implied trust is a resulting trust. This type of trust is created when someone provides consideration (such as money) to purchase property, but the legal title to the property is taken in the name of another person. In this case, a resulting trust is implied, meaning that the person who provided the consideration is presumed to be the rightful owner of the property and is entitled to have the property returned to them if the trust is not fulfilled.

Another example of an implied trust is a constructive trust. This type of trust is created when a person acquires property in circumstances that are contrary to the principles of equity and good conscience. For example, if a person obtains property through fraud, duress, undue influence, or breach of a confidential relationship, a constructive trust may be imposed to restore the property to its rightful owner.