Estate Planning Newsletter

Correcting Mistakes in Trust Distribution

There may be instances where property under a trust is transferred to the wrong beneficiary. This transfer can be corrected through a remedy called a resulting trust or an implied trust. Do not confuse a resulting trust, which is created by the court to remedy some error, from an express trust, which is a trust expressly created by a person (the trustor or settlor) who designates a trustee to manage assets or property for the benefit of trust beneficiaries.

When a Resulting Trust Is Imposed

A resulting trust is typically imposed by a court, and may occur under any of the following situations:

• Failure of an express trust (due to unclear intentions or inherent illegality)
• A need to determine who is to receive property that remains after an express trust has been administered and property has been distributed
• A person acquires property that was not meant to be a gift to him/her

Distinguishing Characteristics

Resulting trusts are different from other trusts, in that they are:

• Involuntary – Imposed by law, rather than being voluntarily created.
• Not a Constructive Trust – Imposed because of a good faith error, instead of the fraudulent transfer or undue influence that characterizes constructive trusts.

© 2025 NextClient.com, Inc. All rights reserved.

• Inter Vivos Trusts
  Unlike a will or some other types of trusts, which take effect upon the death of their creator, a “living trust” or “inter vivos trust” comes into effect during its creator’s lifetime. The creator of a... Read more.
• Inheritance Rights of Spouses after Separation and Divorce
  Most people are aware that a surviving spouse is usually entitled to inherit all or a large portion of the estate of a deceased spouse. Fewer understand the effect on estates if one spouse dies during a legal separation or after a... Read more.
• Special Needs Trusts Preserve Public Benefits for the Disabled
  Some government statistics estimate that between 15% and 20% of all Americans have some form of disability. It is also estimated that the majority of disabled persons will need to avail themselves of public assistance to help pay the... Read more.
• Federal Estate Taxation and "Special Use" Valuation of Certain Properties
  Calculation of the Value of Estate Assets Estate taxes are calculated based upon the value of the assets in the estate. One duty of the executor or administrator is to inventory all estate assets and assign a... Read more.

• LA Prosecutors Claim Retaliation After Filing Motion to Support Menendez Brothers Resentencing
• Supreme Court Agrees to Hear Oklahoma Proposal to Use Tax Dollars to Pay for Religious School as President Trump Opens New “Faith Office” in White House
• California Fire Lawsuits Against Southern California Edison, Los Angeles, and Dept. of Water and Power Continue to Grow
• Parents, Publishers, and Local Library File Lawsuit Over Idaho’s Book Censorship Law
• Wendy Williams Requests New Medical Evaluation, Saying She Is “not Cognitively Impaired” and Feels She Is in ‘Prison’