I have long been a skeptic about the enforceability of gift and loan back arrangements that do not involve the actual transfer of physical cash or money at the gifting stage. Promissory notes seem to be the latest trend in these “gifting” schemes.

This decision that was handed down 2 days ago didn’t deal with the substantive Q about the validity of the scheme, as it was a removal of executor case, however, some of the comments of Davis J are interesting and informative. I will be following the substantive case with interest.

You can read Re Permewan [2021] QSC 151 here.