Ex Delicto Trust

Author:

Moneyzine Editor

1 mins

September 25th, 2023

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Definition

The term ex delicto trust refers to an arrangement that comes into being due to a wrong or tort. Ex delicto trusts typically arise from an operation of the law and are classified as constructive trusts.

Explanation

Derived from the Latin language, ex delicto translates into the English as "of or by reason of a wrong." An ex delicto trust arises as a result of a tort, crime, or even a breach of duty. As is the case with an ex maleficio trust, an ex delicto trust is created through the operation of law and is therefore a subset of the broader category of constructive trusts. These are court imposed, legal remedies to correct a harm.

While ex maleficio trusts are created to remedy the unjust enrichment of one party, ex delicto trusts are created as a result of any type of wrongdoing. For example, if a trustee does not fulfil their fiduciary responsibilities to a beneficiary, a court of law may create an ex delicto trust to relieve the trustee of their duties.

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