- When a parent puts money into a joint account with an adult child, the law presumes the child holds it in trust for the parent's estate unless there is evidence of a different intention.
- The court looks at what the parent intended when the account was set up, using evidence such as bank documents, who used the money and tax treatment.
- A joint account does not always go to the surviving holder alone.
- Joint deposits can still count as part of the estate for a dependant's support claim, even if they pass by survivorship.
A parent dies and a child's name is on the parent's bank account. The bank may say the money is now yours, but a sibling says it belongs to the estate and should be shared under the will. Or a spouse is left wondering whether the household accounts are safe from the estate process.
Joint accounts are one of the most common sources of estate disputes in Ontario. The answer depends on why the account was made joint, not only on whose names are on it. This article explains the general approach the courts take, what evidence tends to matter, and when to get legal advice.
Survivorship is not the whole story
Joint accounts are often opened with the expectation that the other account holder will end up with the money when one holder dies. That is why a bank will often release the funds to the surviving name on the account. But the bank's practice does not decide who is beneficially entitled to the money.
Under the Supreme Court of Canada's decision in Pecore v. Pecore, as applied by the Ontario Court of Appeal, a gratuitous transfer from a parent to an adult child, including putting the parent's money into a joint account, is presumed to create a resulting trust for the parent's estate. In plain words, the starting assumption is that the child holds the money for the estate, not as a gift.
That presumption is not final. It can be rebutted by evidence of the parent's contrary intention, proven on a balance of probabilities. The person arguing the account was a gift or was meant to go to the survivor usually has to bring that evidence.
What evidence shows the parent's intention
The court looks at the evidence of the parent's intention at the time the account was made joint. Relevant evidence includes later statements of intent, the bank documents, who controlled and used the funds, any power of attorney, and how the account was treated for tax.
| Type of evidence | Why it may matter |
|---|---|
| Bank documents | They may show how the parent set up the account and what survivorship terms were chosen. |
| Who used the money | Whether the parent alone controlled and spent the funds, or both holders did, can point to the intention. |
| Power of attorney | Whether the child held a power of attorney is one of the things a court may consider. |
| Tax treatment | How the interest and account were reported for tax can be part of the picture. |
| Later statements | What the parent said about the money afterwards can be considered. |
How much weight each item carries depends on the facts. Keeping records and noting who said what can matter if a dispute is possible.
An example of survivorship not winning outright
In Sawdon Estate v. Sawdon, a parent put seven accounts into joint names with two sons, with right of survivorship, and said the money should be shared by all five children. The Court of Appeal held the funds were not part of the estate. Instead, the joint holders held the beneficial right of survivorship in trust for the children in equal shares.
The lesson is that a joint account does not always go to the surviving holder alone. The parent's actual intention shaped the result. The facts of each family are different, so this example does not predict how your situation would turn out.
Joint accounts and support claims
Even where an account passes by survivorship, it may not be out of reach. Under the Succession Law Reform Act, property held by the deceased and another as joint tenants at death, and certain joint deposits, are deemed part of the estate for the purposes of a dependant's support claim.
So a spouse, child or other dependant who says the deceased did not make adequate provision for them may be able to argue that joint property should be counted. A joint account between spouses is a separate analysis from a parent and adult child, and a lawyer can explain how it applies to your facts.
What to do next
- Do not withdraw or move joint account funds until you understand whether they may belong to the estate.
- Ask the bank for the account opening documents and statements going back as far as it will provide.
- Write down what the parent said about the account and who was present, while memories are fresh.
- Collect any power of attorney documents and tax slips connected to the account.
- If you are the estate trustee, keep the account details in your records and tell the beneficiaries what you have found.
- Speak to an Ontario estates lawyer before agreeing to split or keep the money, especially if relatives disagree.
If you are a surviving holder and there is no disagreement, the family may still want written confirmation of what everyone understands. If there is a dispute, early advice can help you gather the right evidence.
Frequently asked questions
Does the surviving name on a joint account automatically keep the money?
Not always. For a parent and adult child, the law presumes the child holds the money in trust for the parent's estate unless evidence shows a different intention. In one Court of Appeal case the survivors held the funds in trust for all of the parent's children in equal shares.
How do you prove the account was meant as a gift?
You need evidence of the parent's contrary intention, shown on a balance of probabilities. The court looks at the parent's intention at the time of the transfer, and bank documents, who controlled and used the funds, any power of attorney and tax treatment can all be relevant.
Can a dependant claim against a joint account?
Joint property and certain joint deposits are deemed part of the estate for a dependant's support claim, even if they pass by survivorship. Whether a particular person qualifies as a dependant depends on the facts.
Does this apply to a joint account with a spouse?
The parent and adult child analysis is not the same as a spouse analysis. How the rules apply to a joint account between spouses depends on the facts, so it is worth confirming with a lawyer.
Sources
- Sawdon Estate v. Sawdon, 2014 ONCA 101 (ontariocourts.ca) — ontariocourts.ca
- Succession Law Reform Act, R.S.O. 1990, c. S.26 (e-Laws) — Ontario e-Laws
Links go to official government, court and regulator pages. The law changes — confirm you are reading the current version.
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