Adding an adult child to an account can create uncertainty about who should receive the money after the parent’s death. In Pecore v. Pecore, the Supreme Court of Canada examined the distinction between legal account ownership and beneficial entitlement.

A father placed substantial assets into joint accounts with his adult daughter. After his death, a dispute arose about whether the remaining funds belonged to her or formed part of his estate.

The Court confirmed that gratuitous transfers from a parent to an adult child generally attract a presumption of resulting trust. The adult child must establish that a gift was intended. The presumption assists where evidence of actual intention is insufficient; it does not override persuasive evidence of intention.

The relevant intention is the parent’s intention when the transfer occurred. The Court also recognized that a parent may intend to retain beneficial ownership during life while gifting the right of survivorship.

On the evidence, the daughter established her entitlement to the account balances by survivorship.

What this could look like in practice

Imagine a mother who adds her son to an account so he can pay bills while she is recovering from surgery. Her other children later discover that the account remained joint until her death.

A useful investigation would examine the account-opening records, any written explanation of the arrangement, and communications between the mother and son. It would also ask whether her intentions changed or were clarified over time.

The family’s assumptions may differ considerably. One child may remember an administrative arrangement; another may recall a discussion about an intended inheritance. Identifying the dates and sources of those accounts can help clarify the disagreement.

The takeaway

When reviewing a disputed joint account, begin with why it was created and what evidence records that intention. For planning purposes, clear documentation can reduce the risk that surviving family members will have to reconstruct the arrangement after death.

The information on this page is provided for general educational purposes only and does not constitute legal advice. These summaries highlight selected principles and do not address every issue or subsequent legal development. Examples are hypothetical and do not predict the outcome of any case. The application of a decision depends on the facts and applicable law. Reading this page or contacting our firm does not, by itself, create a lawyer-client relationship. If you have further questions or require advice about your situation, please contact us.