Constructive Trust vs Resulting Trust

While constructive trusts and resulting trusts share some similarities, there are also some key differences between them.

One of the main differences is in how they arise. A constructive trust arises by operation of law as a remedy for some form of wrongdoing or breach of trust by the trustee, while a resulting trust arises when a person intends to create a trust relationship, but for some reason the formalities of creating a trust were not followed.

Another difference is that a resulting trust is not imposed by law against the intentions of the trustee unlike a constructive trust but gives effect to his presumed intention.

Please refer to our Equity and Trusts notes for all the differences.