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Pardeep S. Grewal is a lawyer at Lawgical Law Corporation, called to the BC bar in 2024, and a member of the Law Society of British Columbia.
If someone is holding property that should be yours, or a trustee won’t account, you can ask the BC Supreme Court to decide who owns it and to order the trustee to act. Deadlines apply.
Lawgical Law Corporation is a probate, estate litigation and immigration firm with offices in Surrey, Abbotsford and Vancouver, BC. This guide explains how trust disputes work in BC.
The common disputes: a parent put the house or an account in one child’s name; joint bank accounts after a death; a trustee who won’t account or act fairly.
The deadline: limitation periods can apply to trust claims, some as short as two years from when you knew or ought to have known of the claim.
What to do now: keep the bank and title records, write down who paid and what was said, and get advice before a deadline passes.
The lawyers who handle these estate files
About our lawyers
Sundeep S. Grewal founded Lawgical Law Corporation and practises probate, estate litigation and immigration. He has represented clients in the Provincial and Supreme Courts of British Columbia, from chambers applications to contested trials.
Pardeep S. Grewal is a probate, estates and immigration lawyer known for clear communication and practical strategy.
What is a trust?
A trust exists when one person (the trustee) holds property for the benefit of another (the beneficiary). Trusts can be:
- Express: created on purpose, often in a will or a trust document;
- Resulting: presumed by law when property is transferred without payment; or
- Constructive: imposed by a court to prevent someone being unfairly enriched.
Common trust disputes in BC
Joint accounts and transfers to adult children
When a parent adds an adult child to a bank account or property title without payment, the law presumes the child holds it in trust for the parent’s estate. This is called the presumption of resulting trust, confirmed by the Supreme Court of Canada in Pecore v. Pecore, 2007 SCC 17. The child can keep the asset only by showing the parent intended a gift.
These disputes often arise after a death, when siblings disagree about whether an account or house belongs to the estate.
Family farm and land disputes
In the Fraser Valley, many disputes involve farmland held in one family member’s name, or land promised to a child who worked on the farm. A court may find a resulting or constructive trust based on who paid, what was promised and what was done in reliance on it.
Trustee misconduct
Trustees must act honestly, in the beneficiaries’ best interests, and with reasonable care. Disputes arise when a trustee:
- refuses to give beneficiaries information or an accounting;
- favours one beneficiary, or themselves;
- mixes trust money with their own; or
- delays distributing property without a good reason.
Removing a trustee or executor
The court can remove and replace a trustee under sections 30 and 31 of the BC Trustee Act. For executors, section 158 of the Wills, Estates and Succession Act (WESA) allows removal. The court focuses on the beneficiaries’ welfare, not on punishing the trustee.
Our estate litigation services: unfair will (wills variation), will may not be valid and problems with an executor.
What the court can order
- a declaration that property is held in trust for the estate or a beneficiary;
- an order that a trustee provide a full accounting;
- removal and replacement of a trustee;
- repayment of money lost through a breach of trust; and
- transfer of property to the rightful owner.
Types of trust claims in BC
- Resulting trusts: a parent put a house or account in an adult child’s name without payment, and the family disagrees about whether it was a gift. See what happens to joint bank accounts after a death.
- Constructive trusts and unjust enrichment: someone was enriched at your expense, for example through years of unpaid work on family land, and the court may order that they hold the property on a constructive trust.
- Proprietary estoppel: you were promised property, relied on the promise to your detriment, and the owner or the estate now goes back on it.
- Breach of trust: a trustee misused trust money, mixed it with their own, or lost it through carelessness.
- Trustees who won’t account: asking the court to order an accounting or a formal passing of accounts.
- Removing and replacing a trustee: under the Trustee Act. For executors, see removing an executor in BC.
- Varying a trust: court approval of changes under the Trust and Settlement Variation Act, including for beneficiaries who can’t consent themselves, such as minors.
- Rectification: correcting a trust document that doesn’t record what was actually intended.
Deadlines
Limitation periods can apply to trust claims, and some are as short as two years from when you knew or ought to have known of the claim. Others may run differently. Get advice early so you do not lose a claim.
FAQ
What is a resulting trust?
A trust the law presumes when property is transferred for no payment, for example to an adult child. The person receiving it must prove it was a gift.
Can I force a trustee to show me the accounts?
Beneficiaries are generally entitled to information about the trust. If a trustee refuses, the court can order an accounting.
How do I remove a trustee in BC?
Apply to the BC Supreme Court. The court can remove a trustee under the Trustee Act, or an executor under WESA section 158.
Sources (official)
This article is general information, not legal advice. Every case depends on its own facts.