Does the presumption of resulting trust apply to a transfer of assets?

Alberta, Canada


The following excerpt is from N3 Terra Corp v Mooney, 2014 ABQB 583 (CanLII):

In Pecore v. Pecore, 2007 SCC 17, Rothstein J. described the presumption of resulting trust, at paras.24-25: The presumption of resulting trust is a rebuttable presumption of law and general rule that applies to gratuitous transfers. When a transfer is challenged, the presumption allocates the legal burden of proof. Thus, where a transfer is made for no consideration, the onus is placed on the transferee to demonstrate that a gift was intended... This is so because equity presumes bargains, not gifts. The presumption of resulting trust therefore alters the general practice that a plaintiff (who would be the party challenging the transfer in these cases) bears the legal burden in a civil case. Rather, the onus is on the transferee to rebut the presumption of a resulting trust.

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