What is the test for presumption of resulting trust in a transfer of assets?

However, the presumption of resulting trust is not universal. In some circumstances, a presumption of advancement applies instead. Advancement is a gift during the transferor’s lifetime to a transferee who, by virtue of a particular relationship, is financially dependent on the transferor: Pecore v. Pecore, at para. 21. When a presumption of advancement applies, it falls on the party challenging the transfer to rebut the presumption of a gift: Pecore v. Pecore, at para. 27.

Historically, the presumption of advancement applied in two situations: (1) where a father transferred property to his child and (2) where a husband transferred property to his wife: Pecore v. Pecore, at para. 28. The presumption of resulting trust applied to gratuitous transfers of property from a wife to her husband.