A mother's application for a declaration of resulting trust over a family cottage registered to her daughter is dismissed.
An applicant mother sought a declaration of true ownership of a family cottage, asserting a purchase money resulting trust, against her daughter, the registered owner.
The court examined the transferor's intent at the time of purchase, considering tax planning advice and the registration of a mortgage.
It found that the parents intended for the daughter to be the beneficial owner, primarily to avoid capital gains and protect the asset from future creditors or matrimonial claims involving the daughter.
The application was dismissed, affirming the daughter's ownership, though her liability under the original mortgage was maintained, while a later increased mortgage without consideration was deemed not to reflect indebtedness.
SCJSuperior Court of JusticeJul 23, 2019