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How is an adult child able to prove whether funds or property
transferred to them by a parent were intended to be a gift rather
than a repayable loan? In a recent decision, the Ontario Superior
Court of Justice considered this issue.
Falsetto v Falsetto, 2022 ONSC 3701
(CanLII), arose from a dispute between a father and
his adult son (Sam), to whom the father (Salvatore) had transferred
substantial sums of money. These funds were used by the son to
acquire and develop several properties. Salvatore subsequently
claimed that these funds were loans and the properties were to be
purchased in his name while Sam claimed that they were gifts,
except for funds obtained from Salvatore’s line of credit.
The relationship between Salvatore and Sam had a…