What factors will be considered in determining whether funds advanced by parents to children were a presumed gift rather than a loan?
British Columbia, Canada
The following excerpt is from B.S. et al. v. S.E. et al., 2005 BCSC 790 (CanLII):
Factors to be considered in determining whether funds advanced by parents to children were a loan rather than a presumed gift are summarized from a plethora of earlier cases by A.F. Wilson J. in Locke v. Locke, 2000 BCSC 1300 at para. 20 as follows: 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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