Gifting considerations in Ontario – RMS Estates Law

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Gifting considerations in Ontario

Raluca M. Soica
September 8, 2023

This article aims to address various considerations surrounding inter-vivos gifts (gifts made during a person’s lifetime), as well as shed light on why it is important to you.

The case of Pecore v. Pecore refers to a Canadian legal case that revolved around the issue of inter vivos gifts and the determination of the legal ownership of assets, particularly in the context of parent-child relationships. This case is significant in Canadian estate law as it dealt with the question of whether a gift of property made by a parent to an adult child was an outright gift or whether it was intended to be held in trust for the parent’s benefit.

Peter Pecore had transferred assets, particularly farmland, to his adult daughter, Donna Pecore, during his lifetime. Peter later passed away, and his will did not mention the gifted property, causing a dispute between Donna and Peter’s other heirs. The central issue in the case was whether Peter intended to make an inter vivos gift of the farmland to Donna during his lifetime or if he intended for her to receive it as part of his estate after his death. The court had to determine the donor’s intention and clarify the legal principles surrounding inter vivos gifts.

The case went through the Ontario Superior Court, the Ontario Court of Appeal and eventually the Supreme Court of Canada, where it was decided that the adult daughter could prove that the money was intended as a gift. At court, the adult daughter proved that she had a loving relationship with her father. The lawyer testified that the father wanted his daughter financially taken care of and had not mentioned her in the will to avoid taxes. Even though his daughter was able to win the case, she still had to go through multiple trials and show enormous proof while still grieving her father.

The case has had a significant impact on Canadian estate law by clarifying the legal principles regarding inter vivos gifts, emphasizing the importance of clear intention, and providing guidance on how to determine the validity of such gifts in estate disputes.

Gifting can be complicated because multiple factors are involved, and the law must be considered. If you are thinking of embarking on this journey, RMS Estates is available to offer guidance, address your inquiries, and help you find the right solution.

PLEASE NOTE THAT THE CONTENT OF THIS BLOG IS MERELY FOR INFORMATION PURPOSES AND DOES NOT CONSTITUTE LEGAL ADVICE.

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