Trusts may occur by operation of law. True or false?

Prepare for the ATT Law Exam. Practice with multiple choice questions, each providing hints and explanations. Be well-prepared for exam day!

Trusts can arise by operation of law, not just by express declaration. This happens in two main forms: resulting trusts and constructive trusts. A resulting trust occurs when property is transferred to someone, but there’s no intention to gift outright, so the law presumes the property should return to the contributor or their estate. A constructive trust is imposed by the court to prevent unjust enrichment or to rectify a breach of fiduciary duty or wrongdoing; the holder is treated as a trustee for the rightful beneficiary even without an express agreement. Because the law recognizes these trusts as valid and enforceable even without a formal trust declaration, the statement is true. It isn’t limited to charitable purposes, and while the specifics can vary by jurisdiction, the concept exists broadly within equity.