Implied Trusts - Definition - Law Dictionary Home Dictionary Definition implied-trusts

Definition :

Implied trusts. an implied trust is one which arises from an equitable construction put upon the facts, conduct, or situation of parties.

Implied trusts have been distributed into two classes: (1) those depending upon the presumed intent of the parties, as where property is delivered by one to another to be handed over to a third person, the receiver holds it upon an implied trust in favour of such third person; (2) those not depending upon such intention, but arising by operation of law, in cases of fraud, or notice of an adverse equity.

A trust of this kind arises wherever the estate is converted by the trustee from one species of property into another; for if the property, in its original form, were invested with a trust, the cestui que trust's interests cannot be affected by any change of that form: and whether the conversion be in pursuance or in breach of the trustee's duty is immaterial; for an abuse of trust cannot confer any right on the party abusing it, or on those who claim in privity with him. See CONSTRUCTIVE TRUST. Consult Lewin or Godefroi on Trusts.