We have written a number of times on the legal concept of the presumption of resulting trust. Using the search function, you can easily locate them within our blog articles. This subject is unfortunately a great money maker for Estate Litigation lawyers.

One of the client’s of our team of Will and Estate lawyers recently pointed out an extremely common-sense response to the presumption. To remind everyone, the presumption is that the law assumes no one gets anything for free.  If someone gives you money, even if they are as close as a parent or grandparent, the starting point is that this was a loan NOT a gift and it is a responsibility of the recipient to prove that it was a gift.

This is all well and good, but how is the average person even to know of this legal presumption, which is derived from the 2007 Supreme Court of Canada case of Pecore v Pecore.  In other words, how are you supposed to know that this is the law. Your parents want to gift you $100,000 to help you buy a house, which in today’s real estate market is not an unreasonable fact situation. Unless you have evidence that this was meant to be a gift, other beneficiaries of your parents’ estate can argue that no it was never a gift, it was a loan, pay it back so we can get our share of it.

Our other blog articles talk about the kind of evidence one can put forward to prove that it was a gift, but there is nothing as good as a piece of paper that neither the giftor nor the recipient ever thought would have been necessary.  But what lay person would even know that was important?  As experienced Will and Estate Lawyers, we cover this issue in our standard will questionnaire.

Will and Estate Lawyers have to regularly discuss with their clients how much an executor is paid to administer an estate.  In the June 9, 2025 decision of the Ontario Court of Appeal in Farmer v. Farmer by the Honourable Justices Lauwers, Miller and George they dismissed an appeal by an executor who had outrageously abused his position. He had taken advantage of his two brothers, the equal beneficiaries of their late Aunt’s estate. The detail of his greed is not relevant to this particular blog article. However, I remind everyone this is the second highest court in all of Canada.  The decision reads in part;

“Under section 61(1) of The Trustee Act, executors may be compensated at the rate of 2.5% for capital receipts and disbursements, 2.5% for income receipts and disbursements, and 0.4% on the average annual value of the assets as a management fee, but compensation may not be taken in advance unless the Will provides for it”.

This line is quite significant as it is erroneous, and what it is doing is formalising the rule of thumb that has existed for a lengthy time as to the entitlement of an executor. We have canvassed that in other blog articles Paying Your Estate Trustee: Some Important Considerations Regarding Compensation and Tax for Executors and HOW ARE EXECUTORS FEES CALCULATED.

An abridged version of section 61(1) of The Trustee Act actually reads as follows:

“A trustee ( aka executor )…..is entitled to such fair and reasonable allowance for the care, pains and trouble and the time expended in and about the estate as may be allowed by a Judge of the Superior Court of Justice”.

The section goes on to deal with a number of other related issues, but nowhere in the Act is there any provision for a specific formula as is quoted in the decision. What is important is that the Ontario Court of Appeal is again confirming the validity of the 2.5% starting point in calculating compensation for an executor.  This has been recognized in earlier decisions, but here we have no less an authority then the Ontario Court of Appeal.   Note that most estate lawyers simply use 5% of the gross value of the estate to calculate total executors fees.  I recognize that the esteemed Justices use the verb… executors “may” be compensated, but again here we have a stake in the ground confirming that the normal rule of thumb of 5% of the gross value is indeed where one should begin in calculating executor’s fees.  So in essence a practical rule of thumb is now yet again turned into judge made law, aka common law.

Wills and Probate Lawyers must keep these factors in mind.

There was an interesting comment further by the Court of Appeal, which reads as follows:

“The application Judge noted that the amount given to Eric was transferred in order to lower the assets of the estate below $100,000 in order to avoid probate and estate tax”.

I am not certain what $100,000 figure the court is referring to.  Estate administration tax kicks in for any estate having a value greater than $50,000.  Note, Manitoba has no probate tax.  Clearly one needs an experienced Wills and Estates Lawyers to seek probate and assist in administering an estate.

The March 2025 decision of Justice Joseph di Luca in Tyndall v. Noyes is a brief yet important reminder of several key issues frequently encountered by Will and Estate Lawyers and Estate Litigation Lawyers, particularly when it comes to interpreting Wills and dealing with the rights of surviving spouses. A common scenario is that of a common law spouse being left behind—and their right to continue living in the “matrimonial home” owned solely by the now-deceased partner.

Gerry Tyndall, now 76 years of age and after 26 years of living with his common law spouse, the recently deceased Ms. Gail Hill, found himself at odds with her children from a prior relationship.

If I had a dime for every time this happens.

Under his common law spouse’s Will, he was granted the right:“Gerry…can remain living in my house until his death. At that time, the house will be sold and the proceeds divided between my four children. My estate will pay the taxes.”

The Will should have been drafted more carefully. The dispute revolved around whether this provision created a life estate, or merely a licence to occupy the home. This is a classic issue often addressed by Wills and Probate Lawyers and Estate Litigation Attorneys, especially when handling family disputes post-death.

The court, applying standard principles of Will interpretation—which Wills Lawyers in Brampton regularly navigate—found that what had been granted to Mr. Tyndall was the equivalent of a life estate. In essence, a life estate includes exclusive possession of the property, meaning no one else is permitted to live there without the life tenant’s consent. Mr. Tyndall was responsible for ongoing regular expenses such as utilities, while taxes and capital improvements were to be covered by the estate.

The lesser right—a licence—was discussed in the Barsoski Estate v. Wesley 2022 Ontario Court of Appeal case, which made clear that distinguishing a licence from a life estate is often very fact-specific. These types of nuanced property rights are familiar territory for Estate Lawyers and Powers of Attorney Lawyers, particularly when dealing with blended families or informal living arrangements.

What are the lessons from this case? First, that a Will should be drafted with as much precision as possible. If a life estate is to be granted, clear instructions should outline which party is responsible for specific expenses.

Wills and Estates Lawyers must also consider the capital gains implications of granting a life estate—but that’s a topic for another blog post.

For advice on drafting Wills, navigating Powers of Attorney, or handling Estate Litigation, consult experienced Wills and Estates Lawyers or Attorney Lawyers—particularly if you’re looking for Lawyers in Brampton for Wills or Wills Lawyers Brampton.

Wills and Probate lawyers have repeatedly addressed the presumption of resulting trust (just use our search function to find our blog articles on the topic).  Simply a fancy term that just because ownership is registered in two or more names, that is not conclusive proof that the receipt by the survivor is what was actually intended. The presumption of resulting trust is based upon the legal concept that no one gets anything for free. And if you got something for free, then you need to prove that the person who gave it to you had so intended.  Example, your father adds your name to his bank account as a joint owner.  Even though the bank should treat all those funds as yours upon your father’s death, the law will start with the position that the bank account belongs to your dad’s estate, not you.

It is extremely common in estate planning, usually done at the kitchen table, to place various assets in joint ownership with the right of survivorship or with a named beneficiary.

There have been some judicial rumblings that all of this kitchen table estate planning is not enough and is dragged back in under the legal heading of the presumption of resulting trust. In simpler terms, dad never meant for you to get his RRSPs when he simply named you as the beneficiary, you did nothing to receive it and therefore it should be part of the estate.  Same thing as in our example above.

To further complicate matters, we have the 2025 Alberta decision in the Syryda Estate v. Rathwell. In that case, many years after the estate had been divided up,  various beneficiaries under the Will complained when they learned that other assets of the deceased passed outside of the Will by virtue of joint ownership of a bank account created more that 20 years before death.  The executor had the beneficiaries under the Will sign releases. The court threw the releases out saying you failed to disclose those assets that passed outside of the Will, and we are going to make everybody start from scratch and that the executor should have disclosed the jointly held assets that passed outside of probate.  The question becomes what does an executor applying for probate have to reveal about these types of assets.  The existing Ontario forms do not call for that disclosure.

While this is a logical extension of the presumption of resulting trust, it completely destroys kitchen table estate planning.  Estate lawyers beware!

As long standing Lawyers in Brampton for wills, our office does indeed use a much more sophisticated model such as seen under our Full Monty process. However, that is far more expensive than a standard Will. There is much that will negatively impact all concerned if this case is regularly and faithfully followed.  Clearly fodder for Estate Litigation Lawyers.

The solution is properly papering ones actions.  Your lawyer can assist in preparing a proper statement, or deed of gift to confirm what was indeed intended when a joint bank account, or even beneficiary designation is created.

In the fall of 2024, Justice Anette Casullo rendered an interesting decision on a complex real estate/estate question.  Will and Estate Lawyers pay attention. In the case of Clements v. Emerson 2024 ONSC 4885, she dealt with a 24-year family saga about a parcel of land, which contained two buildings in Thorah, Ontario. During these 24 years, we had family estrangement, deaths, bankruptcies, emergence from bankruptcy and family drama. The case once again is evidence of estate litigation being a stew of different areas of law, but the moral of the story for the average reader is that careful drafting is required not only of Wills, but Trust Agreements that at times accompany those Wills. I recommend our devoted readers to take a look at the other blogs that we have posted on the issue of the “Full Monty”, which takes advantage of Trust Agreements to avoid probate. The law of real estate was involved, including the examination of the Conveyancing and Law of Property Act, along with bankruptcy law and will interpretation. Will Lawyers in Brampton often steer away from Real Estate Law but as we say, Estate Litigation Lawyers realize it is a stew.  A grocery store of different areas of law. 

In the absence of careful drafting, lawyers became involved, affidavits (written sworn statements) which triggered cross examinations, Factums, (which are detailed legal arguments), and  tens of thousands of dollars in legal fees were all needed, which could have been avoided if the Will and the Trust Agreement had been more carefully drafted. The matter in the end all turned upon whether or not a provision in the Will described how ownership of a property was given to two sisters. Did they own it as tenants in common or as joint tenants. Our readers can examine our other blog articles on the difference between these two forms of ownership. However, for the sake of simplicity, joint tenancy means a right of survivorship. The last person standing ends up owning the entire property. Tenants in common means upon the death of a registered partial owner of a property, ownership of that share then flows to where that deceased individual’s Will says it goes. Justice Casullo reminded everyone that the default is that when a Will does not make clear how that ownership is to be shared between two or more parties, the default is tenants in common, not joint tenancy. The default of course can be set aside if there is sufficient evidence on the face of the Will that the intention was indeed that the parties were to receive it as joint tenants. Much time, money and emotional effort was expended on answering this question.  

What is particularly interesting to this author, is in the thousand wills I have read over my career, drafted by a hundred different lawyers in Brampton for wills, I have never seen this issue addressed in a will.  Needless to say, our precedent is being updated.  It always is.  Wills and Estates Lawyer we are, and it means we never are content and always trying to improve our output.  

A thought-provoking aspect of this case is the Judge using common sense. It is not that Judge’s generally lack that ability, it is that often they feel their hands are tied by the legal requirements of the case before them.  

Another area of law this case triggered was unjust enrichment. This is a fairness rule, which the courts are able to enforce. One of the two sisters had paid many of the expenses for the entire property and felt that they should be reimbursed now that the judge held that ownership actually were held by the sisters as tenants in common. The Judge did not want to have the parties return to court. To quote the Judge “This matter has already consumed more than its fair share of legal fees and judicial resources not to mention the emotional toll to the parties, a reference (a type of mini trial) is not necessary as the movement forward to the finish line is a simple mathematical exercise. Each of the parties can provide a spreadsheet setting out the expenses”. 

In the important Superior Court of Justice decision in Officer v. The Estate of Charles Herbert Officer,  Justice Faieta was called upon to settle the competing claims of the family of the late Mr. Charles Officer, who died at the young age of 48 without a Will. He was survived by his three year old son, his mother and his estranged common law spouse of five years, who was also the mother of his three year old son. When Mr. Officer died, he owned a condo in joint tenants with the former common law spouse Alice. Charles Officer’s mother Ione Officer lived in the condo, and she alleged that she had been promised by her son the right to continue to live in the condo for free for the balance of her life. She was an elderly infirm woman and pleaded that she needed the security of continuing to live in that in the condo. As Estate Lawyers who regularly have to act as Estate Litigation Lawyers ( Estate Litigation Attorney in the USA is the term ), the issue of who gets to live in a home after the owner has died is not that rare an occurrence. The court found that in the absence of anything in writing or any confirmation of this agreement, the mother had no right to continue to live in the condo and was required to move out.  The court examined  section 13 of The Evidence Act which states that a lawsuit against the heirs, executors or an estate cannot be successful unless the evidence is backed up by other material evidence. In the end, the courts held that that rule did not apply here, in that the contest was not between the mother and the estate, but rather between the mother and Alice. This then led to an argument as to whether or not the law on hearsay evidence was applicable. Hearsay evidence is canvassed in another one of our blogs.  

Recall this author’s earlier comment that estate litigation as practiced by Will and Estate Lawyers, is often an exercise in making a stew. Numerous legal rights are all poured in and must be examined.