Morris Law Office

I don't find this decision surprising in the least and it is what I would have expected. People seem to assume that the act of putting something in joint tenancy has a definite meaning that can be understood by outsiders. They (at least the recipients of these grants) assume that the transfer will be viewed as a gift. In any case, that's what the kid receiving the grant of dad's money in joint tenancy will almost always assert. It is a self-serving interpretation, however. ...What if dad did it just so the son could help him with his banking but really intended that his other children would share in his estate? This is why I tell all my clients that if they mean to give a gift then they should do a deed of gift and if they intend a trust they should do a declaration of trust. The existing law is that if there is a transfer of assets without any consideration being paid by the recipient/transferee then the property is deemed to be held in trust for the estate unless there is other evidence that the transfer was a gift. The very best evidence would be a deed of gift. This stops unscrupulous sons and daughters from cheating their siblings out of their share of the estate where they were put on title just as a way of "helping dad". Granting joint tenancy in a property or a bank account without documenting the purpose of the transfer is just an invitation for the kids to misbehave and fight over the estate proceeds. A little two-page document (either a deed of gift or a declaration of trust) would have avoided this family-busting squabble and the many thousands of dollars of legal fees wasted in litigation but people are so intent on "do-it-yourselfing" their estate planning to save the couple of hundred dollars that documenting the gift or trust (as the case may be) that they are willing to expose themselves to this sort of family disaster. It is penny-wise and pound-foolish. Often though, the "do-it-yourselfing" is more nefarious than just penny pinching in that the party to whom the property is being granted wants to minimize the enormity of the step being taken and furthermore wants to keep the fact that the transfer is being made, secret. As a result, dad is often discouraged from seeing a solicitor with the cost being held out as a justification.

I'm not seeing evidence in my office that home prices will fall substantially. The analyst here is right that many younger people are seeing an opportunity to purchase starter homes, condos and townhouses. There are lots of people out there who have not been substantially affected by the COVID-19 shutdowns. Lenders (and their regulators) are admittedly cautious (perhaps excessively so) and this will have an effect, yet it is less of a seller's market than it was, say, 6 months ago. This is presenting younger first time buyers with opportunities. Although mortgage insurance standards have been toughened interest rates are staying low as a by-product of government and central bank efforts to husband a solid recovery of the economy when the worst of the COVID-19 crisis passes.

Rule#1: "Don't make paper losses real by selling into a bear market." People who have adopted this attitude are being rewarded today with stock markets being substantially up.