Asked by Edith Anderson on May 04, 2024
Verified
An attorney receives a check from the defendant in settlement of a lawsuit brought by his client, the plaintiff. Even if the check is made out in the name of the attorney, it will belong to the client as a:
A) resulting trust.
B) constructive trust.
C) totten trust.
D) spendthrift trust.
Constructive Trust
A legal remedy imposed by a court to prevent unjust enrichment, transforming the holder of property into a trustee for the benefit of another party.
Resulting Trust
A trust that arises by implication of law when property is transferred under circumstances suggesting that the transferee was not intended to have the beneficial interest.
Totten Trust
A type of revocable trust created by depositing funds into a bank account with a designated beneficiary, often used for avoiding probate upon the depositor's death.
- Recognize different types of trusts and their characteristics.
Verified Answer
Learning Objectives
- Recognize different types of trusts and their characteristics.
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