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Home > Law > Law glossary > Law glossary
Presumption of advancement
Last modified: Thu Feb 23 16:37:37 2006
If one person provides money to another, so that the other can buy property with it,
that provision may be a loan or a gift; or it may be that the donor intest to acquire a
share in the property itself. The deciding factor is the intention of the donor
(and, since WestdeutscheVIslington1996, the recipient). Very often the intention is not clear,
so it is assumed that the the donor intented to purchase a share in the property, unless
there is evidence to the contrary. If that is the case, the recipient holds the donor's share
of the property on ResultingTrust for him, in propertion to his contribution.
In certain circumstances, however, the presumption of trust is displaced by the
presumption of advancement. Where this applies, a person who wishes to assert the
existence of a trust will have to lead evidence to rebut the presumption of advancement.
The presumption of advancement applies in situations where one person might reasonable
be expected to make a gift to another, to support or assist the recipient. An advance
of money from a father to a child, for example, would raise the presumption, as would
(probably) an advance from mother to child, or from someone in a parental role.
It probably applies to advances of money between spouses; the less strongly
the presumption applies, the less difficult it will be to raise evidence to rebut
it.
Although there is a welter of case-law on this subject, the presumption of advancement
mostly follows common-sense principles; occassionally, however, one comes across
a completely mad decision such as ReVinogradoff1935.
LandAndPropertyLaw
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