Joint Bank Accounts
The Supreme Court of Canada considered two cases involving joint holdings with children and the presumption of advancement. Pecore v. Pecore, [2007] 1 S.C.R. 795, 2007 SCC 17 and Madsen Estate v. Saylor, [2007] 1 S.C.R. 838, 2007 SCC 18 considered whether the presumption of advancement was applicable in our modern lives when there are gratuitous transfers from parents to their children. The Court concludes that the presumption of advancement ought to only apply to gratuitous transfers from parents to minor children. The presumption of resulting trust, therefore ought to be applied where the joint accounts or assets are held with adult children. It is then open for the transferee (the adult child) to show evidence regarding the parent’s intentions when the gift was made. The bank documents disclosing a right of survivorship will not by themselves assist the transferee in rebutting the presumption of a resulting trust.
