Parents who intend to transfer their assets into joint names
with some or all of their adult children need to carefully consider
that decision before implementing the transfers. A series of recent
Court cases in Western Canada highlight the need for careful legal
advice when parents are considering such transfers in the context
of estate planning or family business operations.
In Canada, ownership of property as a joint tenant carries with
it the right of survivorship. In simple terms, it means that the
joint owner who survives the longest stands to inherit the entire
asset. However, in 2007 the Supreme Court of Canada confirmed a
general rule that when parents transfer property into joint names
with adult, independent children without receiving any
consideration in return, the law presumes that on the parent's
death, the child holds the property on a resulting trust for the
parent's estate. If the surviving child (who stands to inherit
the whole property by right of
