What is the test for creating a resulting trust in a gratuitous transfer?

British Columbia, Canada


The following excerpt is from Oord v. Oord, 2012 BCSC 1857 (CanLII):

In Pecore v. Pecore, 2007 SCC 17 (CanLII), [2007] 1 S.C.R. 795 [Pecore], Mr. Justice Rothstein, writing for the majority, discussed the principles to be applied by the court when dealing with gratuitous transfers and determining whether a resulting trust was created or whether the transfer was a gift. He began by defining the competing notions of resulting trust and advancement at paras. 20 - 21: 20 A resulting trust arises when title to property is in one party's name, but that party, because he or she is a fiduciary or gave no value for the property, is under an obligation to return it to the original title owner ... . 21 Advancement is a gift during the transferor's lifetime to a transferee who, by marriage or parent-child relationship, is financially dependent on the transferor.

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