A recent case in the NSW Supreme Court has highlighted the importance of clarifying what is a gift and what is an investment when it comes to family property purchases. In Dunphy v Russell [2018] NSWSC 721 a daughter disputed whether a $200,000 payment by her father towards her first house constituted a gift or was made with the intention to create a trust.

While the daughter insisted that the money was a gift given because of the father’s guilt over his absence from her life, the court ultimately held that the father’s contribution to the purchase of a $562,000 home was given in return for a one third interest in the property, and that the interest was held by her on trust.

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