Susan and her son, Mark, purchased a condominium together, contributing equally to the down payment and holding title as joint tenants. Susan makes all mortgage payments and pays all property taxes. What is a significant risk to Mark of this arrangement, especially if Susan passes away?

Question: Susan and her son, Mark, purchased a condominium together, contributing equally to the down payment and holding title as joint tenants. Susan makes all mortgage payments and pays all property taxes. What is a significant risk to Mark of this arrangement, especially if Susan passes away?

Answer options: ✅ If Susan predeceases Mark, Revenue Canada may challenge the true ownership and include 100% of the property's value in Susan's estate for probate purposes, potentially causing delayed transfer.

• Mark will be legally obligated to pay all outstanding debts of Susan after her death due to the joint tenancy.
• Mark will lose his half-interest in the property if Susan's will specifies that it should go to another beneficiary.
• The property will automatically be converted to a tenancy in common upon Susan's death, requiring a complex legal process to sell.

Correct answer: If Susan predeceases Mark, Revenue Canada may challenge the true ownership and include 100% of the property's value in Susan's estate for probate purposes, potentially causing delayed transfer.

Explanation: When property is held jointly but one party (Susan) contributed all the funding, and the other party (Mark) contributed nothing (other than technically holding title), the 'presumption of a resulting trust' can arise. This means Revenue Canada or other beneficiaries could argue that Mark holds his share in trust for Susan's estate, and 100% of the property belongs to Susan's estate, overriding the right of survivorship and subjecting the entire value to probate.