William G. Schwab and Associates
811 Blakeslee Blvd. Dr. East (PA Route 443) PO Box 56 Lehighton, PA 18235
Tel 610-377-5200 Fax 610-377-5209
NEWSLETTER
Estate Planning/Probate October 2, 2014
 
Personal Injury
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Estate Planning/Probate
Real Estate
 

Federal Estate Tax Requirements for "Special Use" Valuation

Although Congress passed legislation in 2001 incrementally increasing the amount exempt from federal estate tax over the next few years, ...(more)

 

The Annual Exclusion and Gift Taxes

A gift tax is a tax on the privilege of making gifts to others while the taxpayer is still living. ...(more)

 

Estate Valuations and Federal Estate Taxes

Assets owned by a person at the time of their death, whether real or personal property, is commonly referred to ...(more)

 

The Personal Representative of an Estate

When a person dies, a personal representative must be appointed to manage and distribute the decedent's estate.Types of Personal RepresentativesA ...(more)

 

Estate Planning Headlines

Woman hiding from Bay Area county

Navigating the probate process involves many rules

Is a U.S. Revocable Trust Okay for Canadians?

So you think your family is dysfunctional? Try to top Rep. Charlene Lima's

No Contest Clauses in Estate Planning

Remedy for Unjust Obtainment of Property


A constructive trust is a remedy imposed by the court when a person has wrongfully attained property. The court basically takes the property away from the wrongful owner and puts it in trust for the rightful owner. In the estate planning/administration context, a constructive trust is usually imposed when there is wrongful conduct on the part of the trustee or beneficiary.

Types of Wrongful Conduct
Any wrongful activity that leads to the unfair acquisition of property may be cause for a constructive trust, including:

  • Fraud
  • Accident
  • Mistake
  • Undue influence
  • Violation of trust or fiduciary duty (for example, when a trustee purchases property in his own name rather than in the name of the beneficiary)
  • Homicide (for example, to obtain life insurance benefits)

Remedy Under Constructive Trusts
A constructive trust is imposed by a court as a result of a complaint by an affected party (typically a trustor or beneficiary of a trust). It may provide that the property pass from the wrongful owner to the rightful owner, or it may provide for the property to be held by a trustee for the rightful beneficiary.

However, if the unlawful owner has damaged or destroyed any of the trust property, the rightful owner is entitled to a money judgment for the value of the property.

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