CanadaWhat is the presumption of resulting trust when property is in someone else's name?
In Canada, when property is transferred gratuitously (without payment) into another person’s name, the law presumes a resulting trust — meaning the recipient holds the property in trust for the original owner, unless proven otherwise.
What the Law Says
Canadian common law applies the presumption of resulting trust to gratuitous transfers of property — especially where title is placed in another person’s name without consideration. This presumption helps prevent unjust enrichment and ensures property does not automatically belong to the named holder.
The presumption of resulting trust arises when a person transfers property to another without receiving anything of value (i.e., no purchase price or other consideration). In such cases, the law assumes the transferee holds the property in trust for the transferor — unless evidence shows a different intention, such as a gift.
This presumption is rebuttable: the person holding title can provide clear evidence that the transferor intended an outright gift. Courts examine surrounding circumstances — including relationship, conduct, and statements — to determine intent.
It is distinct from the outdated 'presumption of advancement' (which presumed gifts from fathers to children or husbands to wives), which has been largely rejected in Canada, especially after Donkin v. Bugoy.
What Courts Have Said
The Supreme Court of Canada affirmed the continuing relevance of the presumption of resulting trust in gratuitous transfers and clarified its application in estate disputes.
The Court held that where property is transferred without consideration into another’s name, a resulting trust is presumed — and the property reverts to the transferor’s estate upon death unless the recipient proves it was intended as an outright gift.
What to Do
Document your intention clearly at the time of transfer (e.g., gift letter or trust declaration).
Keep records of payments, communications, or other evidence showing whether the transfer was meant as a gift or trust.
If disputing ownership, gather evidence of the transferor’s true intent — e.g., testimony, bank records, or contemporaneous notes.
Consult a lawyer early, especially before litigation, to assess strength of resulting trust claim or defence.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.