My MIL died unexpectedly with no will. She has two biological children and a common-law partner (they were not married). No one has applied to be trustee or executor of the estate as it is believed to be insolvent (many debts including to the CRA, few assets). However, she does have at least three vehicles in her name, one of which was purchased as a gift for her common-law partner a few years ago – but ownership was never transferred to her partner's name.
Her partner has been advised by a lawyer that my MIL's children can provide a signed affidavit that the vehicle was a gift ("held in trust") to him in order to transfer the ownership to his name without probate. Does this implicate her children (legal beneficiaries of the estate) in the future if creditors and/or CRA come after the estate? If this tactic is legitimate, can the same rules apply for the other vehicles in my MIL's name (i.e. saying they were also gifts held in trust for her children)? Thanks for any insight!