Asked by Edith Anderson on May 04, 2024

verifed

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.
verifed

Verified Answer

KR
Kianna ReeseMay 10, 2024
Final Answer :
A
Explanation :
A resulting trust arises when property is transferred to someone but it is understood that the transferee is holding it for the benefit of another person. In this case, the attorney received the check as a result of the settlement of the client's lawsuit, so the check belongs to the client as a resulting trust. The other choices (constructive trust, totten trust, spendthrift trust) do not apply in this situation.