Opinion ID: 2198154
Heading Depth: 1
Heading Rank: 7

Heading: Presumption of Gift Rebutted

Text: The purpose of a presumption in the context of a case like this is to provide a logical result when the intent of the parties at the time of the transaction is not documented by contemporaneous writing. If, however, there is other sufficient evidence of the parties' intent  from the parties themselves or from the circumstances of the transaction  the presumption may be rebutted. Although the presumption of a gift arises under the circumstances of this case, we must acknowledge that the facts of this case are unusual. The trial judge rationally found from the parties' conduct at the time of the transaction and immediately thereafter that the Proceks intended to purchase a home for themselves. Accordingly, he rationally concluded that the Proceks did not intend to finance their daughter's purchase of a home for herself. Although titling of the property in Helen's name creates the presumption of a gift, it is significant that the Proceks themselves, due to their advanced age and inexperience, did not purchase the property themselves and did not oversee titling of the property. They were not present at the settlement and had no communication with the real estate lawyer who handled the transaction. The Proceks were elderly immigrants who did not live under the American legal system. They did not receive the advice of a lawyer before consummating the purchase, but instead relied solely on the advice of their daughter. While they may have authorized Helen's action in placing title to the property in her name, they did not themselves undertake the action of placing title in Helen's name. As the Court of Chancery found, it is likely the Proceks did not consider or understand the legal significance of Helen's titling the property in her own name. Moreover, the actions of the Proceks regarding the property, in 1978 and thereafter, simply were not consistent with the giving of an unconditional gift. As a general rule a gift must be executed (a) by the donor's complete and unconditional delivery of the property that is the subject of the gift and (b) by the donee's acceptance of the gift. [24] Although it is possible for a donor to make a present gift of real property but retain a life estate in the property, it still must be the donor's intention at the time of the alleged gift to vest the donee with immediate and irrevocable dominion and control over the property. [25] If the donor does not transfer dominion and control over the property at the time of the alleged gift and anything remains to be done to accomplish the gift, the transaction constitutes merely an executory agreement to give, and the title to the property does not pass. [26] The trial judge rationally concluded that the actions of the Proceks in 1978 were not, contrary to Hudak's contentions, consistent with an intent to vest Helen with immediate and irrevocable dominion and control over the property. The Proceks paid the entire purchase price of the property. They immediately moved into the property and lived there continuously and exclusively. They paid all of the expenses associated with ownership of the property. [27] Helen contributed nothing in that regard. Accordingly, we find that the circumstances of the 1978 transaction, standing alone, provided clear and convincing evidence sufficient to rebut the presumption of a gift. Furthermore, although Anna Procek's testimony was obscured by her age and the language barrier, it was competent, and it was sufficient to support the trial judge's finding that the Proceks did not intend in 1978 to give to Helen, completely and unconditionally, their only substantial asset. [28] Based on Anna Procek's testimony, the court concluded that the Proceks expected Helen would assist them in their twilight years, and in exchange for that assistance the Proceks intended to reward Helen, upon their death, with ownership of the house. The conclusion of the Court of Chancery that the Proceks intended that beneficial as well as legal title to the house would pass to Helen after, and only after, she survived both her parents is supported by the record and is the product of a logical and orderly deductive process.