constructive trustnoun [ C ]
ukusLAW a type of trust (= a legal arrangement in which somebody is given control over another person's money or property) that is set up according to the rules of equity (= a system of law that allows a legal decision to be made where the law that already exists is not considered suitable):
In a case where murder is committed to obtain insurance money, the constructive trust prevents the beneficiary from directly profiting by his or her unlawful act.
Compare
express trust
implied trust