What does a presumption of resulting trust mean in transfers between a parent and child?

A presumption of resulting trust in the context of transfers between a parent and child indicates that when a parent transfers property to a child, the law can presume that such a transfer is not intended as a gift unless there is evidence to the contrary. This presumption is irrespective of the child's financial status, meaning that it applies whether the child is dependent or independent. Therefore, even if the child is fully financially capable and independent, the parent-child relationship raises the presumption that the transfer was made with the expectation of a resulting trust.

This legal principle ensures that the intentions behind property transfers are more carefully considered, preventing automatic classifications as gifts without clear evidence of such intent. The significance of this presumption lies in its ability to protect parental interests and intentions, particularly in cases where a property might be contested later.

The other options do not accurately reflect the nuances of this legal principle. Transfers are not automatically viewed as gifts, verbal agreements do not alone substantiate a claim regarding the property transfer, and the presumption of a resulting trust does not eliminate the possibility of inheritance claims. Understanding this presumption can help individuals navigate the complexities of property transfers within familial relationships.