TSEM6271 - Legal background to trusts and estates: constructive trust

A constructive trust is imposed by the rules of equity. It must satisfy the demands of justice and good conscience. For example, trustees may receive a profit or income from trust property. They hold it on a constructive trust, and apply it to the purposes of the principal trust.

An important set of circumstances where there may be a constructive trust over residential property is explained in CG65417 onwards.