Description
TRUSTS: Where Fraud is seemingly permissible by the courts, government, and public servants/trustees.
TRUST. – In General
A right of property, real or personal, held by one party for the benefit of another. See Good- win v. McMinn, 193 Pa. 646, 44 A. 1094, 74 Am.St. Rep. 703; Boyce v. Mosely, 102 S.C. 361, 86 S.E. 771, 773; King v. Richardson, C.C.A.N.C., 136 F.2d 849, 856, 857. A confidence reposed in one person, who is termed trustee, for the benefit of another, who is called the cestui que trust, respecting property which is held by the trustee for the benefit of the cestui que trust. State ex rel. Wirt v. Superior Court for Spokane County, 10 Wash.2d 362, 116 P.2d 752, 755. Any arrangement whereby property is transferred with intention that it be administered by trustee for another’s benefit. Raffo v. Foltz, 106 Cal.App. 51, 288 P. 884, 886.
Cestui que trust: The person for whose benefit a trust is created or who is to enjoy the income or the avails of it.
Executory trust: One which requires the execution of some further instrument, or the doing of some further act, on the part of the creator of the trust or of the trustee, towards its complete creation or full effect. Martling v. Martling, 55 N.J.Eq. 771, 39 A. 203; Carradine v. Carradine, 33 Miss. 729; In re Fair’s Estate, 132 Cal. 523, 60 P. 442, 84 Am.St.Rep. 70; Pillot v. Landon, 46 N. J.Eq. 310, 19 A. 25.
Constructive trust: A trust raised by construction of law, or arising by operation of law, as distinguished from an express trust. Wherever the circumstances of a transaction are such that the person who takes the legal estate in property cannot also enjoy the beneficial interest without necessarily violating some established principle of equity, the court will immediately raise a constructive trust, and fasten it upon the conscience of the legal owner, so as to convert him into a trustee for the parties who in equity are entitled to the beneficial enjoyment. Hill, Trustees, 116; 1 Spence, Eq.Jur. 511; Nester v. Gross, 66 Minn. 371,
“Constructive trusts” do not arise by agreement or from intention, but by operation of law, and fraud, active or constructive, is their essential element. Actual fraud is not necessary, but such a trust will arise whenever circumstances under which property was acquired made it inequitable that it should be retained by him who holds the legal title. Constructive trusts have been said to arise through the application of the doctrine of equitable estoppel, or under the broad doctrine that equity regards and treats as done what in good conscience ought to be done, and such trusts are also known as “trusts ex maleficio” or “ex delicto” or “involuntary trusts” and their forms and varieties are practically without limit, being raised by courts of equity whenever it becomes necessary to prevent a failure of justice. Union Guardian