Definition

Noun: A trust that is not explicitly created by a written document or a formal declaration, but is instead established by the actions, circumstances, or relationship of the parties involved, as determined by a court applying principles of law and equity.

Usage

An implied trust arises from the presumed intentions of the parties or the demands of justice, rather than from a direct, express statement. It is a legal construct used to prevent unjust enrichment.

Examples

• The court found an implied trust existed because he had used her money to purchase the property in his name alone.
• An implied trust can be created when one person holds legal title to an asset for the benefit of another, based on their conduct.
• The transfer of funds without a formal agreement sometimes results in the establishment of an implied trust.

Advanced Usage

• Resulting Trust: A type of implied trust that arises when a person provides the purchase money for a property but the legal title is placed in another person's name. The law presumes the holder of the title is meant to hold it in trust for the person who supplied the funds, unless a gift was intended.
• Constructive Trust: A type of implied trust imposed by a court as an equitable remedy, regardless of the parties' intentions, to prevent someone from being unjustly enriched by holding property they should not rightfully keep.

Variants and Related Words

• Express Trust: (n.) A trust that is deliberately and explicitly created, usually by a written instrument such as a trust deed or a will. This is the direct counterpart to an implied trust.
• Fiduciary Relationship: (n.) A relationship of trust and confidence between parties, which is the foundational concept upon which implied trusts are often based.

Synonyms

• Inferred trust
• Trust by operation of law
• Presumptive trust

Related Legal Doctrines

• Equitable Title: The right to benefit from an asset held by another under a trust. The beneficiary of an implied trust holds equitable title.
• Unjust Enrichment: A legal principle stating that a person should not profit at another's expense without justification. This principle often underpins the imposition of a constructive implied trust.

Noun

1. a trust inferred by operation of law