Key points

• a constructive trust is imposed by operation of law;

• it has a number of different definitions;

• it arises in a variety of different situations;

• the key feature of all types of constructive trust is to prevent unconscionability;

• in England and Wales the courts can only impose an institutional constructive trust; and

• other jurisdictions can impose a constructive trust as a remedy in the form of a remedial constructive trust.

Introduction. What is a constructive trust? Problems in definition

A constructive trust is difficult to define. It is imposed by the court where it would be unconscionable for the legal owner of property to deny a beneficial interest to a claimant. It differs from a resulting trust because it does not usually give effect to the intentions of the parties but arises as a response to circumstances.