Can a Caregiver Child Keep Money Taken from an Aging Parent's Accounts?

Can a Caregiver Child Legally Keep Money Taken from a Parent’s Bank Account?

No — not without clear evidence that the parent genuinely intended the money as a gift or agreed compensation. Under Ontario law, when a parent gratuitously transfers funds to an adult child (including through a joint account), the law presumes the child holds those funds in trust for the parent. The child must prove the parent meant to give the money away — and that proof must come from something more than the child’s own say-so.

This principle was central to the 2026 Ontario Superior Court decision in Thompson et al v. Bourcier et al, 2026 ONSC 5523 (CanLII), available here. The case involved a family dispute over an estate worth just under one million dollars, divided equally among five adult children. One sibling had lived near the parents, assisted with their care, and managed their banking in the years before the father’s death. After the other siblings took over their father’s care and finances, they discovered that significant sums had been transferred out of the father’s accounts.

What Is the Presumption of Resulting Trust in Ontario?

The presumption of resulting trust is the legal starting point whenever a parent transfers property to an adult child for free. It means the law assumes the child is holding the money on behalf of the parent — not keeping it. The child who received the funds must rebut that presumption by proving, on a balance of probabilities, that the parent intended a genuine gift.

The Supreme Court of Canada confirmed this rule in Pecore v. Pecore, 2007 SCC 17. A joint bank account does not automatically mean the child owns the money in it. The funds remain presumptively the parent’s unless the child can show the parent intended otherwise. In this case, the court found the joint account was opened to allow the caregiver sibling to manage the father’s banking — not to transfer ownership of the funds to her.

What Evidence Do You Need to Prove a Gift or Caregiver Compensation Agreement?

You need corroborating evidence of the parent’s intention — not just your own account of what was said. Courts look at bank documents, how the account was actually used, whether the child contributed any of their own money, tax treatment, powers of attorney, and statements the parent made to independent third parties.

In this case, the caregiver sibling relied on her own testimony, a neighbour who described conversations with the mother about compensating her daughter, and a brother who recalled a similar conversation. The court found this insufficient. Neither the neighbour nor the brother could say anything specific about the amounts involved or how compensation would be structured. There was no written agreement, no disclosure to other family members, and no formal arrangement made while the parents were alive and capable. The court also found the caregiver’s own evidence internally inconsistent across multiple affidavits.

When Can an Estate Trustee Be Removed in Ontario?

An estate trustee can be removed when their continued involvement would endanger trust assets, prevent proper administration, or show a want of honesty or reasonable fidelity. Courts do not interfere lightly with a testator’s choice of trustee, but removal is warranted when it becomes a clear necessity to protect the beneficiaries.

The court removed the caregiver sibling as a co-trustee because her financial dealings with the father’s accounts created a direct conflict of interest with the estate she was supposed to administer. Her conduct had already stalled the estate’s administration, and the court found her continued involvement would obstruct rather than assist the process. Two other siblings who had not engaged in wrongdoing were also removed — not as punishment, but because their removal allowed the remaining trustees to finalize the estate efficiently. Our Ontario wills and estates lawyers regularly advise on trustee removal applications and the steps available when an estate is being mismanaged.

Does Providing Caregiving Services Entitle You to Compensation from an Estate?

Not automatically — and not without a documented agreement. Caregiving is valuable, and Ontario courts recognize that adult children sometimes sacrifice income and time to care for aging parents. However, the right to compensation must be established through a proper agreement, ideally in writing and confirmed by the parent while they still have capacity.

In this case, the caregiver sibling’s own evidence showed her income losses from caregiving were far smaller than the amounts she had withdrawn. The court also found that some of her lost income was attributable to unrelated factors, including the COVID-19 pandemic and a later leave of absence for her own health. Without a clear, documented compensation arrangement, the court had no basis to treat the withdrawals as anything other than a breach of the fiduciary duty she owed as the person managing her father’s finances. If you are caring for a parent and want to understand your options, our executor liability and estate administration team can help you structure an arrangement that protects everyone.

What Happens When Funds Are Taken from a Vulnerable Parent’s Accounts?

When a parent was cognitively declining at the time of the transfers, courts scrutinize the transactions even more carefully. A parent’s vulnerability does not automatically mean they lacked legal capacity — capacity is assessed differently for financial decisions versus personal care decisions. But progressive cognitive decline is a red flag that should prompt anyone managing a parent’s finances to be especially transparent and cautious.

In this case, the father’s physician ultimately concluded he had not been able to make financial and property decisions since around September 2021. Medical records showed a gradual decline beginning years earlier. The court found the caregiver sibling was or should have been aware of her father’s vulnerability, which made her clandestine transactions even more difficult to justify. The father’s own brother attested that the father had expressed concern that his daughter was taking his money.

Questions and Records to Discuss with a Lawyer

• Do you have written documentation of any compensation agreement made with your parent while they had capacity, and were other family members informed?
• Are there bank records, power of attorney documents, or third-party statements that could corroborate your understanding of your parent’s intentions?
• If you are an estate trustee, have you kept a complete accounting of all transactions involving estate or pre-death assets?
• Has the administration of the estate stalled because of disputes among co-trustees, and what options exist to move forward?
• Were there signs of cognitive decline in the parent at the time key financial decisions were made, and how might that affect the validity of those transactions?

If you have questions about an estate dispute, a trustee removal, or how the presumption of resulting trust might apply to your situation, the team at UL Lawyers is available to discuss your circumstances at ullaw.ca/connect.

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This article is automated commentary on a public court decision and is for general information only — not legal advice. Decisions rely on facts unique to each case. If you are affected by a similar issue, contact a lawyer for advice specific to your situation.