In Bosanac v Commissioner of Taxation and Another
[2022] HCA 34, the High Court confirmed that, although
"especially weak" and
"anachronistic", the presumption of advancement
is still applicable today.
Presumptions
The presumption of a "resulting trust" is an
ancient presumption of equity. It provides that a person who
advances purchase money for property, which is held in the name of
another person, intends to have a beneficial interest in that
property.
The resulting trust is subject to an exception, namely the
"presumption of advancement", which presumes
that, due to the nature of the relationship between the two people,
the transferor did not intend the other person to take the property
subject to the transferor's beneficial interest but rather that
the transfer was intended to be a gift. Such a presumption has been
found in relationship between husband and wife, fiancés and
parents and children.
