What is the test for characterizing a parental advance as a gift or a loan?
British Columbia, Canada
The following excerpt is from MacLean v. Mio, 2010 BCSC 1109 (CanLII):
In Locke v. Locke, 2000 BCSC 1300 at para. 20, the court stated that the factors to be considered in characterizing a parental advance as a gift or a loan include the following: 1. whether there were any contemporaneous documents evidencing a loan; 2. whether the manner for repayment is specified; 3. whether there is security held for the loan; 4. whether there are advances to one child and not others, or advances of unequal amounts to various children; 5. whether there has been any demand for payment before the separation of the parties; 6. whether there has been any partial repayment; and 7. whether there was any expectation, or likelihood, of repayment.
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