What is the difference between a resulting trust and a constructive trust?

What is the difference between a resulting trust and a constructive trust?

• A. A resulting trust arises from the presumed intention when there is no explicit trust; a constructive trust is imposed to prevent unjust enrichment or wrongfully obtained property.
• B. A resulting trust is created by court; constructive trust arises from settlor's explicit wish.
• C. Both are the same.
• D. Constructive trusts only apply to personal property.

Answer: (A)

Think of the difference as origin versus remedy. A resulting trust comes from inferred ownership when there is no express trust—the law presumes the person who provided the property or funds did not intend to gift the beneficial ownership to the other person, so the ownership “results” back to the contributor based on that presumed intention. It’s about reconstructing what the parties likely intended from the circumstances. A constructive trust, by contrast, is a remedy the court imposes to prevent unjust enrichment or correct wrongdoing. It doesn’t rely on what the parties intended; instead, the court treats the holder of the property as a trustee for the rightful owner to prevent injustice arising from improper acquisition or conduct.

Think of the difference as origin versus remedy. A resulting trust comes from inferred ownership when there is no express trust—the law presumes the person who provided the property or funds did not intend to gift the beneficial ownership to the other person, so the ownership “results” back to the contributor based on that presumed intention. It’s about reconstructing what the parties likely intended from the circumstances.

A constructive trust, by contrast, is a remedy the court imposes to prevent unjust enrichment or correct wrongdoing. It doesn’t rely on what the parties intended; instead, the court treats the holder of the property as a trustee for the rightful owner to prevent injustice arising from improper acquisition or conduct.