Which of the following scenarios is most likely to result in a 'presumption of resulting trust' when property is transferred into joint tenancy?

Question: Which of the following scenarios is most likely to result in a 'presumption of resulting trust' when property is transferred into joint tenancy?

Answer options: ✅ A parent adding an adult child to the title of their principal residence for estate planning purposes.

• A married couple purchasing a home together and registering it in joint tenancy.
• A parent transferring a down payment to an adult child for the purchase of the child's own home.
• Siblings jointly inheriting a cottage from their parents.

Correct answer: A parent adding an adult child to the title of their principal residence for estate planning purposes.

Explanation: The 'presumption of resulting trust' (Pecore v. Pecore, 2007 SCC 17) generally applies when a gratuitous transfer of property occurs between a parent and an adult child. It means the law presumes the adult child holds the property in trust for the parent's estate unless there is clear evidence of a 'gift' (presumption of advancement does not apply to adult children).