Can a Person Claim Back Money They Gifted Someone?
Discussion
I’ve got the same situation albeit completely reversed.
My mum and her partner needed to borrow some money for a couple of months. They provided two ways they would be able to pay it back (both genuine) but went silent on me. After six months I asked what was going on with the loan and she hung up the phone after a rant.
I suspected it might go this way, but didn’t get anything in writing because a) I thought she might value our relationship more than that and b) asking would have caused arguments.
That was a couple of years ago and I’ve not spoken since. I’ve written the money off.
My mum and her partner needed to borrow some money for a couple of months. They provided two ways they would be able to pay it back (both genuine) but went silent on me. After six months I asked what was going on with the loan and she hung up the phone after a rant.
I suspected it might go this way, but didn’t get anything in writing because a) I thought she might value our relationship more than that and b) asking would have caused arguments.
That was a couple of years ago and I’ve not spoken since. I’ve written the money off.
Glassman said:
It was a conversation about the future and the money was given to invest for the kids. Other than the transaction itself, there is nothing on he matter. No conditions, no previous requests, no reminders, nothing.
It looked like step mum (I have always referred to her as Resident Evil) had turned a corner when she gifted the kids. But now we are getting close to executing the Will, Resident Evil has changed her mind and wants that money back!
Does she feel the Will has treated her unfairly vs your wife - maybe she's now regarding the money as an "advance" on the Will?It looked like step mum (I have always referred to her as Resident Evil) had turned a corner when she gifted the kids. But now we are getting close to executing the Will, Resident Evil has changed her mind and wants that money back!
Alex Z said:
I’ve got the same situation albeit completely reversed.
My mum and her partner needed to borrow some money for a couple of months. They provided two ways they would be able to pay it back (both genuine) but went silent on me. After six months I asked what was going on with the loan and she hung up the phone after a rant.
I suspected it might go this way, but didn’t get anything in writing because a) I thought she might value our relationship more than that and b) asking would have caused arguments.
That was a couple of years ago and I’ve not spoken since. I’ve written the money off.
I have always made 'loans' to family on the expectation it will not be paid back. Between my wife and I it comes to at least 5 times, but, as we are 'better off' than them we have no complaints.My mum and her partner needed to borrow some money for a couple of months. They provided two ways they would be able to pay it back (both genuine) but went silent on me. After six months I asked what was going on with the loan and she hung up the phone after a rant.
I suspected it might go this way, but didn’t get anything in writing because a) I thought she might value our relationship more than that and b) asking would have caused arguments.
That was a couple of years ago and I’ve not spoken since. I’ve written the money off.
We’ve given cash gifts to the children.
Last one was to our son for a house purchase. It was done formally by a declaration of it as a gift. That gives it clarification both for him and our estate for IHT rules. Hopefully the 7 year timescale will be passed! Nothing to indicate otherwise re health.
We have also amended wills to equalise the splitting of estate so that the sum is biased in the split.
Both children are aware of this and how the wills are set up. No problems from them as they get on well. You can’t foresee the future but something drastic would need to happen to change their closeness. Definitely no favouritism!
Dysfunctional families....
Last one was to our son for a house purchase. It was done formally by a declaration of it as a gift. That gives it clarification both for him and our estate for IHT rules. Hopefully the 7 year timescale will be passed! Nothing to indicate otherwise re health.
We have also amended wills to equalise the splitting of estate so that the sum is biased in the split.
Both children are aware of this and how the wills are set up. No problems from them as they get on well. You can’t foresee the future but something drastic would need to happen to change their closeness. Definitely no favouritism!
Dysfunctional families....
While my wife was in labour with our 1st child I had a family member call me asking to borrow money. My kid is over 10 now and I still haven't been paid back. I have a good solution now when asked, and I have been asked a few times since, I just simply say I haven't got it, which has largely been true ever since the little sponge and his sibling was born.
Sheepshanks said:
Does she feel the Will has treated her unfairly vs your wife - maybe she's now regarding the money as an "advance" on the Will?
Step mum's solicitor writes: "Further, <her name> requires you to pay back the <amount> which she transferred to your bank account as she is in need of this money towards putting down a deposit for a property which she likes to purchase."
The letter starts by them stating they are "required to clarify" her equitable interest in the house which is currently in trust. The Deed states she can stay there until she pegs out (and when this happens, the whole house goes to the (only) daughter). In the meantime, daughter can convert the house into two flats if she chooses.
When daughter signaled her intention to do what the DoT states, step-mum blocked he number and made herself impossible to speak to. Her 'reaction' to the proposal is this letter which basically is her wanting to be bought out.
It's a weird letter which is also asking for what bank/investment accounts late father (her husband) might have had; the details of any additional property he might have invested in, along with 'any other assets' which belonged to him. Solicitor also wants to see the invoice for the father's funeral. The letter finishes by saying that stepmum feels threatened by daughter and any attempt to contact her - or visit the house - will result in the police being called and a court order will be sought thereafter.
Stepmum has also taken the family heirloom (which is mostly the daughter's birth mother's jewelry) from the safe deposit box and placed them in one that only she has the key to now.
Edited by Glassman on Thursday 16th November 18:01
Glassman said:
Into the shredder, or is a response in order?
Definitely shredder.This thread has already confirmed that cash received is an outright gift unless and until the "donor" turns up with documentation to show it was only a loan or something like that.
The thread has also correctly identified that any IHT liability (donor's death within 7 years) would primarily fall on the deceased's estate. HMRC only go after the recipient of the gift if the estate is too small to pay that tax. This makes perfect sense because it stops people giving everything away just before they die and avoiding IHT.
sospan said:
We’ve given cash gifts to the children. It was done formally by a declaration of it as a gift. That gives it clarification both for him and our estate for IHT rules.
That's the "belt and braces" way of doing it. For most people it's sufficient to keep a note of gifts made and file it in the same place as the Will. In these days where everything is electronic and traceable it's easy to check back on itemised bank statements that will show what was paid to who and when.If you make a loan there should at least be a short letter, signed by both parties, if you want to be sure it really is repayable.
Glassman said:
Step mum's solicitor writes:
"Further, <her name> requires you to pay back the <amount> which she transferred to your bank account as she is in need of this money towards putting down a deposit for a property which she likes to purchase."
Beyond the deposit, is she in a position the fund the rest of the purchase price?"Further, <her name> requires you to pay back the <amount> which she transferred to your bank account as she is in need of this money towards putting down a deposit for a property which she likes to purchase."
Glassman said:
The letter starts by them stating they are "required to clarify" her equitable interest in the house which is currently in trust. The Deed states she can stay there until she pegs out (and when this happens, the whole house goes to the (only) daughter). In the meantime, daughter can convert the house into two flats if she chooses.
When daughter signaled her intention to do what the DoT states, step-mum blocked he number and made herself impossible to speak to. Her 'reaction' to the proposal is this letter which basically is her wanting to be bought out.
I don't suppose she's thrilled about having the house that she's living in literally carved up.When daughter signaled her intention to do what the DoT states, step-mum blocked he number and made herself impossible to speak to. Her 'reaction' to the proposal is this letter which basically is her wanting to be bought out.
Sheepshanks said:
Glassman said:
Step mum's solicitor writes:
"Further, <her name> requires you to pay back the <amount> which she transferred to your bank account as she is in need of this money towards putting down a deposit for a property which she likes to purchase."
Beyond the deposit, is she in a position the fund the rest of the purchase price?"Further, <her name> requires you to pay back the <amount> which she transferred to your bank account as she is in need of this money towards putting down a deposit for a property which she likes to purchase."
Glassman said:
The letter starts by them stating they are "required to clarify" her equitable interest in the house which is currently in trust. The Deed states she can stay there until she pegs out (and when this happens, the whole house goes to the (only) daughter). In the meantime, daughter can convert the house into two flats if she chooses.
When daughter signaled her intention to do what the DoT states, step-mum blocked he number and made herself impossible to speak to. Her 'reaction' to the proposal is this letter which basically is her wanting to be bought out.
I don't suppose she's thrilled about having the house that she's living in literally carved up.When daughter signaled her intention to do what the DoT states, step-mum blocked he number and made herself impossible to speak to. Her 'reaction' to the proposal is this letter which basically is her wanting to be bought out.
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