Google | Generative AI
Generated on February 4th, 2025
In Canadian estate law, the presumption of resulting trust is a legal principle where a gratuitous transfer of assets from a parent to an adult child is presumed to have been made for the parent’s benefit.
That means the adult child holds the property “in trust” for the estate, unless the child can prove the parent intended an outright gift.
This presumption is often used in estate disputes where a child claims ownership of assets transferred to them by a deceased parent. It places the responsibility —the burden of proof— on the child to prove the parent’s intention to gift the assets, rather than on the estate to prove the lack of a gift.
For example, if a parent transfers a bank account into joint names with an adult child, and provides no other consideration, the law presumes the parent did not intend to gift the account to the child. The child would need to prove the parent intended to make a gift to overcome this presumption.
How it works
- Gratuitous Transfer:
The presumption applies when property is transferred from one person to another without any payment or consideration. - Adult Children:
The presumption specifically targets transfers to adult children, not minor children. - Parental Intent:
The law presumes the parent did not intend to make an outright gift but rather that the child would hold the assets in trust for the parent’s estate. - Rebutting the Presumption:
The adult child can overcome this presumption by demonstrating, on the balance of probabilities, that their parent intended to gift the property to them outright.
The presumption of resulting trust in estate law is a legal starting point that requires the recipient adult child to provide clear evidence of their parent’s intent to make a gift; otherwise, the property is presumed to be held in trust for the parent’s estate.
Generative AI is experimental. For legal advice, consult a professional.
Google | Generative AI | Prompt: “presumption of resulting trust estate law”
