Buffa v. Giacomelli, 2026 ONCA 566
What happens when a parent gives more than $1.7 million to one child during their lifetime, even though the parent’s Will divides the estate between two children?
That was the issue in Buffa v. Giacomelli, a recent Ontario Court of Appeal decision.
Giuliana Buffa transferred substantial assets to her daughter through joint accounts, RRIF and TFSA beneficiary designations, and the proceeds from the sale of her condominium. She also signed written statements expressly confirming that she intended the money to be gifts.
After her death, her son challenged the transfers, alleging undue influence and arguing that the money was subject to a resulting trust.
The Court of Appeal rejected the challenge.
The Importance of Pecore
The Supreme Court of Canada’s decision in Pecore v. Pecore, 2007 SCC 17 established that when a parent makes a gratuitous transfer to an adult child, the starting point is generally a presumption of resulting trust.
The child must therefore establish that the parent intended to make a gift.
In Buffa, the Court found that the evidence clearly rebutted that presumption. The written gift letters, joint accounts, beneficiary designations and Giuliana’s conduct demonstrated her intention to give the money to her daughter.
The Court also confirmed that evidence concerning the relationship between the parent and child can be relevant in determining the parent’s intention.
Undue Influence
The Court also considered Goodman Estate v. Geffen, which recognizes that undue influence may be presumed where one person is in a position to dominate another’s will.
There was no evidence that Giuliana was dependent upon or dominated by her daughter. In any event, the evidence demonstrated that Giuliana made her own financial decisions freely and deliberately.
Why the Case Matters
The decision is an important reminder that:
- joint accounts do not automatically mean that the surviving child owns the money beneficially.
As Pecore demonstrates, the parent’s intention remains critical.
It also illustrates the importance of documenting substantial lifetime gifts.
Giuliana did not simply transfer the money. She put her intentions in writing, and her subsequent actions were consistent with those intentions.
For parents making significant gifts to one child while leaving other children to inherit under a Will, clear documentation of intention, capacity and the circumstances surrounding the gift can be extremely important.
Buffa v. Giacomelli reinforces a simple estate-planning lesson: if you intend to make a substantial lifetime gift, document the gift and your reasons for making it.
Brian Madigan LL.B., Broker