Unintentional Trusts

Unintentional trusts occur when someone unknowingly holds property or assets on behalf of others without explicitly setting up a trust. This typically happens when a person takes action that, by law, creates a duty to manage the property for another's benefit—for example, holding money for someone else or acting as an executor. In such cases, the law recognizes a trust relationship exists, even if no formal agreement was made. Essentially, the person becomes a trustee unknowingly, and must manage the assets in the best interests of the beneficiaries, following the trust duties imposed by law.