Opinion ID: 2102034
Heading Depth: 2
Heading Rank: 2

Heading: Oral or Constructive Trust

Text: Alternatively, appellants claim that they have raised a triable issue of fact on their right to their stepmother's estate under the principles governing oral or constructive trusts. We reject this argument for essentially the same reason that we have rejected their claim of irrevocable mutual wills, namely, that the record contains no evidence of any intent on the part of either John or Mary Lemp to create a trust or of a promise to make any particular disposition of their property. The elements of a trust include a trustee, who holds the trust property and is subject to equitable duties to deal with it for the benefit of another; a beneficiary, to whom the trustee owes such duties; and the trust property, which is held by the trustee for the beneficiary. Cabaniss v. Cabaniss, 464 A.2d 87, 91 (D.C.1983). Additionally, there must be proof of the settlor's intention to create a trust, which may be manifested by written or spoken language or by conduct, in light of all surrounding circumstances. Id. (citations omitted). On the element of intent, courts are properly hesitant to create implied testamentary trusts, i.e., trusts which are not readily apparent from the face of the will. 5 PAGE ON WILLS, supra, § 40.9, at 128-129. Moreover, oral instructions should not be used to show that a gift is in trust, and a number of courts have reached this result, even if the will refers expressly to such oral instructions and attempts to incorporate them. Id. § 40.11, at 130-131 (footnotes omitted). The test for proving an intent to create a testamentary trust from oral evidence is essentially the same as that for proving an oral agreement not to revoke reciprocal wills: clear and convincing evidence of a promise to dispose of assets by testamentary disposition in favor of one or more specific beneficiaries. See Levin v. Smith, 513 A.2d 1292, 1296 (Del. 1986); Dougherty v. Dougherty, 175 Md. 441, 447-50, 2 A.2d 433, 436 (1938); In re Irrevocable Inter Vivos Trust Agreement of Hanley, 307 Pa.Super. 153, 175-76, 452 A.2d 1360, 1371 (1982) (Johnson, J., dissenting), aff'd sub nom. Siebert v. Bird, 503 Pa. 119, 468 A.2d 1093 (1983). Thus appellants' assertion of an oral trust must fail. Neither Colonel Lemp's will nor Mary's will provides for the creation of a trust, and there is no other evidence that either of them ever intended to create a trust for appellants' benefit. Indeed, appellants have failed to prove even that the Colonel and Mary had an oral agreement for the survivor of them to hold the estate, or any part of it, in trust for anyone. [9] Appellants' argument that the court should establish a constructive trust is also without merit. A constructive trust is fundamentally a remedy to prevent unjust enrichment. D. DOBBS, HANDBOOK ON THE LAW OF REMEDIES § 4.3, at 246 (1973) (hereinafter DOBBS ON REMEDIES). When someone is lawfully entitled to possession of certain property, there is no reason to impose a constructive trust on that property for the benefit of someone else. See, e.g., Oursler v. Armstrong, supra, 10 N.Y.2d at 391, 179 N.E.2d at 491, 223 N.Y.S.2d at 480. Mary received no benefits under the Colonel's will because she was already the joint owner of almost all the property at issue. She was fully entitled to all of that property, as well as her statutory allowance. See Willbanks v. Goodwin, supra, 300 Or. at 199-200, 709 P.2d at 223-224. Therefore, Mary was not unjustly enriched, and a constructive trust is not warranted.