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‘Presumption of a Gift’ For Transfers Between Parents & Children in Illinois

Author: LegalEase Solutions 

The law is clear in Illinois that the transfer of property from a parent to a child is presumed to be a gift, and the presumption may only be overcome by clear and convincing evidence to the contrary. In re Marriage of Heinze, 257 Ill. App. 3d 782  at 790-791,

A transfer from a parent to a child is presumed to be a gift.  In re Marriage of Wanstreet, 364 Ill. App. 3d 729, 735 (Ill. App. Ct. 5th Dist. 2006).  Normally, this presumption can only be overcome with clear and convincing evidence.  Id.  This Court relied on In re Marriage of Blunda, 299 Ill. App. 3d 855 (Ill. App. Ct. 2d Dist. 1998) for further discussion of ‘presumption of a gift.’  The Appellate Court of Illinois, Second District in In re Blunda observed that property acquired during marriage by means of a gift is to be classified as non-marital property.  Id. at 866.  In a dissolution of marriage proceeding, there must be proof of donative intent for a gift to be valid.  Id.  Donative intent is presumed where the transfer of property is from a parent to a child.  Id.  Thus, the party challenging the gift has the burden to present evidence that the parent making the transfer lacked donative intent.  Id.  A trial court’s discretion on such determinations will not be disturbed unless it is contrary to the manifest weight of the evidence.  Id. at 866-867.