Background
After her husband died in 2019, Giuliana Buffa’s relationship with her son, Alexander, became estranged, while she remained close to her daughter, Laura Giacomelli. Giuliana’s 2018 will divided her estate 45% to Alexander and 55% to Laura, and appointed Laura as alternate attorney for property and estate trustee.
In 2020 and 2021, Giuliana created joint accounts with Laura, designated Laura beneficiary of her RRIF and TFSA, and signed letters directing that investment proceeds and the proceeds of her condominium sale be placed in joint accounts and gifted to Laura. The transfers totalled more than $1.7 million. Alexander sought to bring those funds back into the estate, alleging undue influence and, alternatively, a resulting trust. The application judge dismissed his claim.
The Court’s Holding
The Court of Appeal dismissed Alexander’s appeal and upheld the finding that the transfers were valid inter vivos gifts. The application judge had found no relationship of dependency or dominance that could trigger a presumption of undue influence, and no actual undue influence. Those factual findings were entitled to deference. In any event, findings that Giuliana acted freely, made her own financial decisions, and gave the gifts deliberately would have rebutted any such presumption.
The court also held that Laura rebutted the presumption of resulting trust that normally applies to gratuitous transfers from a parent to an adult child. Giuliana’s written gift letters, beneficiary designations, and creation of joint accounts corroborated her donative intent. The judge could consider Giuliana’s differing relationships with her children as evidence consistent with that intent. For the condominium proceeds, delivery occurred when the proceeds were deposited into the joint account in May 2021—not when Laura later withdrew funds—and there was no evidence Giuliana’s intention or capacity had changed before delivery.
Key Takeaways
- A presumption of undue influence requires a relationship in which the recipient could dominate the donor’s will; a parent-child relationship alone is not enough.
- Written gift instructions, joint-account arrangements, and beneficiary designations can collectively rebut the presumption of resulting trust.
- Where funds are gifted into a joint account, delivery may occur when the funds enter that account, giving the joint holder withdrawal rights.
Why It Matters
The decision confirms that estate plans set out in a will do not necessarily govern assets transferred outside the estate during the testator’s lifetime. Clear contemporaneous documentation of a donor’s intention can be decisive, even where the transfers materially alter the practical distribution anticipated by the will.
It also illustrates the appellate restraint applied to credibility and factual findings in estate disputes, particularly findings on capacity, influence, and donative intent.