What is the current state of the law in Canada on a conveyance between close relatives?

British Columbia, Canada


The following excerpt is from I.W.A. and Community Credit Union v. Liu, 1997 CanLII 3828 (BC SC):

In Creditor-Debtor Law in Canada, supra, the authors refer to a conveyance among close relatives as one which is bound to attract suspicion and state that the close relationship is itself a badge of fraud (p. 615). In Koop v. Smith (1915), 1915 CanLII 26 (SCC), 51 S.C.R. 554 the rule appears to have been laid down that where there is a transaction between close relatives the bona fides of the transaction should be corroborated. Subsequent authorities seem to hold that there is no hard and fast rule but that a requirement for corroboration is a "maxim of prudence" (p. 616).

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