A bankruptcy trustee sought a declaration that a property interest held in the name of the bankrupt’s brother was held in trust for the bankrupt and therefore formed part of the bankrupt estate.
The trustee argued the brother was added to title solely to facilitate mortgage refinancing and had no beneficial ownership.
The respondents asserted the brother contributed significant funds toward the purchase and mortgage payments and held a beneficial interest proportionate to those contributions.
The court rejected the credibility of the respondents’ evidence and preferred contemporaneous documentary records showing the transfer was made for financing purposes only.
The court set aside the transfer of joint tenancy, held the brother had no legal interest in the property, but recognized a trust interest for his $15,000 contribution.
