Can a Person Claim Back Money They Gifted Someone?
Discussion
If a person - a family member - gave you an amount of money 'as a gift', could they, several years later claim it back in any way?
Whilst I think I know the answer, I'm wondering if there is a legal angle to this?
In short, a family member (wife's step mum) gave an amount of money to her 'for the kids'. Family circumstances have since changed (death of wife's father) and step-mum is now asking for the money back, about four years after giving it. I want to laugh it off, but a legal letter asking for it back has just been served. The letter is about another probate matter but the 'request' for the money is part of it.
The money was transferred bank to bank.
Into the shredder, or is a response in order?
Whilst I think I know the answer, I'm wondering if there is a legal angle to this?
In short, a family member (wife's step mum) gave an amount of money to her 'for the kids'. Family circumstances have since changed (death of wife's father) and step-mum is now asking for the money back, about four years after giving it. I want to laugh it off, but a legal letter asking for it back has just been served. The letter is about another probate matter but the 'request' for the money is part of it.
The money was transferred bank to bank.
Into the shredder, or is a response in order?
Have you any communication from the time of the gift?
I'd imagine if it were to go all the way, the difference between a 'gift' and 'loan' may be the point of contention.
As to how much water that holds could be down to how much time and money one is prepared to spend on solicitors.
No way of compromising?
I'd imagine if it were to go all the way, the difference between a 'gift' and 'loan' may be the point of contention.
As to how much water that holds could be down to how much time and money one is prepared to spend on solicitors.
No way of compromising?
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!
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!
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!
If you've got nothing in writing, who's to say it wasn't taken under duress, pressure, as a loan, etc etc.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!
Not insinuating that at all but without dashcam footage did you run into them, or did they reverse into you.
I think you should take all measures to compromise and placate them.
As painful as that's going to be.
EmailAddress said:
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!
If you've got nothing in writing, who's to say it wasn't taken under duress, pressure, as a loan, etc etc.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!
Not insinuating that at all but without dashcam footage did you run into them, or did they reverse into you.
I think you should take all measures to compromise and placate them.
As painful as that's going to be.
OP just tell her to do one.
within 7 years that gift may be taxable, try and have an open conversation but certainly dont agree to pay it back
https://www.gov.uk/inheritance-tax/gifts
edit to add: When my grandfather died, it is my understanding the nobody got anything as his wife got the lot and wrote the whole of our family out of her will. His funeral was the last time any of the family saw her and this is what you want to avoid for the kids sake.
https://www.gov.uk/inheritance-tax/gifts
edit to add: When my grandfather died, it is my understanding the nobody got anything as his wife got the lot and wrote the whole of our family out of her will. His funeral was the last time any of the family saw her and this is what you want to avoid for the kids sake.
Edited by andburg on Wednesday 15th November 09:34
Edited by andburg on Wednesday 15th November 09:35
I would assume (yes I know about assuming) that without paperwork specifically stating it was a loan then the presumption will be that it was a gift.
I’m sure if you search on here you’ll fine threads where a loan has been made and the loaner has been told that without proof they are basically stuffed.
Drawweight said:
I would assume (yes I know about assuming) that without paperwork specifically stating it was a loan then the presumption will be that it was a gift.
I’m sure if you search on here you’ll fine threads where a loan has been made and the loaner has been told that without proof they are basically stuffed.
That would be my assumption also. If they don't have anything documenting that it was a loan then they can go whistle.I’m sure if you search on here you’ll fine threads where a loan has been made and the loaner has been told that without proof they are basically stuffed.
Is there a new series of Judge Rinder due?
In all seriousness, I would think without a written contract stating it was a loan with a schedule to repay (as an example) then legally it would be considered a gift.
On top of this if you can evidence that you have invested in the Grandkid's names I would think that it would strengthen any case (although I certainly wouldn't expect it to ever see the inside of a court room)
If she's that desperate for the money I would guess that the total of the estate is below the threshold for IHT
Hope all gets sorted. The last thing you need after suffering a loss
In all seriousness, I would think without a written contract stating it was a loan with a schedule to repay (as an example) then legally it would be considered a gift.
On top of this if you can evidence that you have invested in the Grandkid's names I would think that it would strengthen any case (although I certainly wouldn't expect it to ever see the inside of a court room)
If she's that desperate for the money I would guess that the total of the estate is below the threshold for IHT
Hope all gets sorted. The last thing you need after suffering a loss
Gargamel said:
If the intention at the time was its a gift, then its usually considered irrevocable.
If she is using a lawyer, then she will already know this.
This. A gift is a gift. Its been transferred to the recipient without conditions. If it can be taken back then it's not a gift.If she is using a lawyer, then she will already know this.
Edited by 98elise on Wednesday 15th November 11:34
Glassman said:
If a person - a family member - gave you an amount of money 'as a gift', could they, several years later claim it back in any way?
Whilst I think I know the answer, I'm wondering if there is a legal angle to this?
In short, a family member (wife's step mum) gave an amount of money to her 'for the kids'. Family circumstances have since changed (death of wife's father) and step-mum is now asking for the money back, about four years after giving it. I want to laugh it off, but a legal letter asking for it back has just been served. The letter is about another probate matter but the 'request' for the money is part of it.
The money was transferred bank to bank.
Into the shredder, or is a response in order?
What does the "legal letter" refer to the original payment as? A gift or a loan? if it's the former then the Lawyer should know that it's irrevocable (unless it can be proved that the gift was made under pressure). if the Lawyer is suggesting it was a loan then ask them to provide the paperwork.Whilst I think I know the answer, I'm wondering if there is a legal angle to this?
In short, a family member (wife's step mum) gave an amount of money to her 'for the kids'. Family circumstances have since changed (death of wife's father) and step-mum is now asking for the money back, about four years after giving it. I want to laugh it off, but a legal letter asking for it back has just been served. The letter is about another probate matter but the 'request' for the money is part of it.
The money was transferred bank to bank.
Into the shredder, or is a response in order?
Evanivitch said:
andburg said:
within 7 years that gift may be taxable, try and have an open conversation but certainly dont agree to pay it back
https://www.gov.uk/inheritance-tax/gifts
This was my thoughts.https://www.gov.uk/inheritance-tax/gifts
Edited by andburg on Wednesday 15th November 09:34
Edited by andburg on Wednesday 15th November 09:35
If you were all on the same side, return the money to avoid paying the tax, then re-gift or inherit it?
In any case IHT is the estate's problem, not the OPs.
Gargamel said:
If the intention at the time was its a gift, then its usually considered irrevocable.
If she is using a lawyer, then she will already know this.
In the past the person would be known as an ‘Indian giver’. A term used when Europeans first encountered Native Americans, the Europeans took the Native Americans’ offerings as gifts, whereas the Native Americans believed it to be some form of trade or barter, and expected some later reciprocation. In the OP’s case, I doubt there is any cultural misunderstanding here, though.If she is using a lawyer, then she will already know this.
Evanivitch said:
andburg said:
within 7 years that gift may be taxable, try and have an open conversation but certainly dont agree to pay it back
https://www.gov.uk/inheritance-tax/gifts
This was my thoughts.https://www.gov.uk/inheritance-tax/gifts
Edited by andburg on Wednesday 15th November 09:34
Edited by andburg on Wednesday 15th November 09:35
If you were all on the same side, return the money to avoid paying the tax, then re-gift or inherit it?
Stop scareing the OP, or at least read the post properly.
There is some utter rubbish posted on this thread.
OP the same happened to me. My father asked me to repay all the expenses he had (would you believe) documented that he had incurred in bringing me up. He got a tame solicitor to write to me referring to it all as a loan. I wrote back asking for proof of the sum being a loan and if none was forthcoming within seven days, to cease contact or I would consider it demanding money with menace.
Never heard another thing. That was six years ago.
OP the same happened to me. My father asked me to repay all the expenses he had (would you believe) documented that he had incurred in bringing me up. He got a tame solicitor to write to me referring to it all as a loan. I wrote back asking for proof of the sum being a loan and if none was forthcoming within seven days, to cease contact or I would consider it demanding money with menace.
Never heard another thing. That was six years ago.
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