Oftentimes, transactions are not properly documented between family members. BC Supreme Court recently settled a dispute on transactions between family members. The Cadwells paid one of their daughters $170,000 to help with buying and building a new house. After both parents passed away, the other children sought to challenge the transaction. Because there was no proper agreement in place, it was up to the court to decide whether the transaction was a loan or an equity investment.
Read the full commentary here: Recent B.C. Case Illustrates Importance of Documenting Transactions Between Family Members