A constructive trust is a remedy or solution a court may use to right a wrongful act or situation for which there may not otherwise be a legal remedy, such as money damages, or when the legal remedy would be inadequate. Because a constructive trust is based on a sense of fairness, equity, or what is right, it is known as an equitable remedy and a court that provides such a remedy is sometimes said to be sitting in equity. A constructive trust may also be known as an implied trust or involuntary trust.

The equitable remedy of a constructive trust is often used by courts when a person has possession or title to property that the person holding the property acquired by fraud—or when property obtained by fraud or theft is exchanged for other property or is given as a gift to another. Even though the person in possession of the property (motor vehicle, painting, home, etc.) may have title to it, courts recognize that the rightful owner from whom the property was stolen, embezzled, or fraudulently appropriated (taken) has a superior right and claim to it.

In these situations the court may apply or declare a constructive trust in favor of the rightful owner—giving title (ownership) of the wrongfully held property to the person or entity from whom it was stolen, embezzled, or fraudulently appropriated. The person or entity wrongfully holding the property is known as a constructive trustee and is required to turn the property over to the constructive beneficiary (the rightful owner).

Because a constructive trust is not an actual, written trust it is known as a legal fiction—created by courts to do equity.

In Georgia, as in other jurisdictions, a constructive trust is an equitable remedy that courts may impose to address situations where holding legal title to property would result in unjust enrichment due to wrongful conduct, such as fraud, theft, or embezzlement. This remedy is designed to prevent someone from profiting from their wrongful acts at the expense of the rightful owner. When a court in Georgia imposes a constructive trust, it effectively recognizes the rightful owner's superior claim to the property and orders the person who wrongfully holds the property (the constructive trustee) to transfer it to the rightful owner (the constructive beneficiary). This type of trust is considered a 'legal fiction' because it is not a trust that is set up by the parties but rather one that is imposed by the court to achieve a fair outcome. The use of constructive trusts in Georgia is consistent with the principles of equity, aiming to ensure that justice is served when traditional legal remedies are inadequate.