Is an advance by a mother to her daughter in-law considered a gift?

British Columbia, Canada


The following excerpt is from Henderson v. Henderson, 1999 CanLII 2681 (BC SC):

In Wiens v. Wiens (1991), 1991 CanLII 2006 (BC SC), 31 R.F.L. (3d) 265 ( B.C.S.C.) Harvey J. of this court considered an advance to a son and daughter-in-law by a mother. He said of the presumption of advancement: It is clear from the case law that, where the parents of a married child advance money to facilitate the purchase or the improvement of the matrimonial home, and the spouses do not later agree as to the nature of that advancement, the court must presume that the money advanced is a gift to the child, which on a presumption of advancement becomes a gift to the wife. In the absence of clear evidence, like a promissory note specifying the amount or any other secured document showing to the court that the advancement is a loan, the court must assume the money advanced is a gift.

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