Florida Trust Litigation: Is a Constructive Trust Appropriate Where a Will or Trust Has Been Invalidly Executed?

What is a constructive trust? What should West Palm Beach probate litigators know about constructive trusts? When is a constructive trust appropriate in a Palm Beach trust lawsuit? In your probate lawsuit, has the court ordered that a property is subject to a constructive trust? Do you know what that means? Experienced West Palm Beach trust lawyers know that a constructive trust is not actually a trust. Instead, a constructive trust is a flexible equitable remedy to prevent unjust enrichment by a party.

A constructive trust may be the right tool to protect a non-probate asset that was received by someone who shouldn’t have received it. That person could have received the asset through fraud, undue influence, duress, breach of fiduciary duty, etc. A constructive trust can require the person who has the ill-gotten assets to hold them and give them to the proper party. Do you know what you have to show the court to be granted your request for a constructive trust in West Palm Beach? You should read a March 17,2017 Second DCA opinion, Kelly v. Lindenau, to learn more.  

In this Florida trust and estates appeal, Lindenau, the decedent’s girlfriend, is left a house in an amendment to the trust. However, that amendment was not properly executed according to Florida law. The trial court found that reformation was proper and required the trustee to transfer title of the property to Lindenau. The trustee appealed, arguing that, because the amendment was not properly executed, it is invalid. Therefore, Lindenau should not receive the house.

In the appeal, Lindenau contends that, even if reformation isn’t allowed, a constructive trust was valid in her situation because all of the parties agreed that the decedent intended to leave the house to her. The opinion explains that ” a constructive trust should be imposed where the testator failed to validly revoke a codicil to a will, but where it was clear that his intention had been to revoke the codicil ad that that intention was frustrated by his mistake in destroying a copy rather than the original.”  However, the second DCA did not agree that a constructive trust should be imposed in this situation. This is because the trust amendment in question was executed improperly. “While the imposition of a constructive trust might be appropriate where a will ( and thus a trust) has been validly executed, that remedy is NOT appropriate where there is an error in the execution of the document.” To read the entire case, click here.