Which term describes a trust established by operation of law or by judicial construction rather than explicit language?

Which term describes a trust established by operation of law or by judicial construction rather than explicit language?

• A. Settlor
• B. Fiduciary
• C. Testamentary
• D. Implied

Answer: (D)

Implied trust is formed by operation of law or by how a court interprets a situation, without the parties setting up explicit language to create a trust. This means the trust arises from what is required by fairness, law, or judicial reasoning rather than from a deliberate, written declaration. So when a trust is established not through clear, express terms but through how the law or a judge views the relationship and duties, it’s described as an implied trust. The other terms refer to different ideas: a settlor is the person who creates an express trust; a fiduciary is the role of the trustee or someone entrusted with managing assets; a testamentary trust is created by a will and typically relies on language in the will.

Implied trust is formed by operation of law or by how a court interprets a situation, without the parties setting up explicit language to create a trust. This means the trust arises from what is required by fairness, law, or judicial reasoning rather than from a deliberate, written declaration. So when a trust is established not through clear, express terms but through how the law or a judge views the relationship and duties, it’s described as an implied trust. The other terms refer to different ideas: a settlor is the person who creates an express trust; a fiduciary is the role of the trustee or someone entrusted with managing assets; a testamentary trust is created by a will and typically relies on language in the will.