Trust Lawyers NYC Constructive Trust Property Victory

The decedent purchased a residential property in New York in her own name decades earlier. She lived in the home continuously and paid property taxes, utilities, and maintenance expenses. During a period of financial difficulty, she transferred title to a cousin with the understanding that the transfer was temporary and that beneficial ownership would remain with her.

No written trust agreement existed. However, the decedent continued to reside in the property and exercised full control over it until her death.

After the decedent passed away, her only child inherited her estate pursuant to New York Estates, Powers and Trusts Law § 4-1.1. The heir requested that the cousin transfer title back to the estate so that probate administration could proceed properly.

The cousin refused and claimed sole ownership based on record title. This refusal created a dispute requiring judicial intervention in New York Supreme Court.

New York courts typically examine four elements when determining whether to impose a constructive trust. Those elements include a confidential or fiduciary relationship, a promise, a transfer made in reliance on that promise, and unjust enrichment.

The relationship between the decedent and the cousin was familial and close. Evidence demonstrated that the transfer occurred with an understanding that beneficial ownership would remain with the decedent. The cousin would be unjustly enriched if permitted to retain full ownership.

The heir commenced an action under Real Property Actions and Proceedings Law § 1501 to determine claims to real property. RPAPL Article 15 permits a plaintiff to seek a judicial determination of title and remove adverse claims.

The complaint sought both a declaration of constructive trust and a judgment directing conveyance of legal title to the estate. Documentary evidence, tax records, and witness testimony supported the equitable claim.

Under EPTL § 4-1.1, when a decedent dies intestate and leaves a surviving child, that child inherits the entire estate if no spouse survives. The heir therefore held statutory inheritance rights to the property.

However, probate could not effectively transfer marketable title while the cousin remained the record owner. The equitable action was necessary to align record title with beneficial ownership.

The Supreme Court found that the elements of a constructive trust were satisfied. The court determined that allowing the cousin to retain title would result in unjust enrichment.

The court imposed a constructive trust and ordered conveyance of title to the estate representative. The judgment restored legal title consistent with the decedent’s equitable ownership and inheritance rights.

Successful claims depend on clear evidence of the decedent’s intent and continued control. Courts examine tax payments, maintenance records, occupancy history, and witness testimony.

Equitable relief is discretionary, so thorough documentation strengthens the likelihood of success. Early legal assessment prevents prolonged title cloud and financial harm.

Families facing inheritance disputes in New York should seek prompt legal guidance. Constructive trust litigation can protect rightful heirs when record title does not reflect true ownership.

Our firm assists clients in estate related real property disputes, quiet title actions, and equitable trust claims. If you are confronting a similar title conflict, our legal team can evaluate available remedies and pursue corrective relief under New York law.