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Gift/loan from parent

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  • Gift/loan from parent

    Good evening.

    I wonder if someone could offer some advice.
    Between 18/01/2007 and 14/02/2012 my mother saw fit to financially assist myself and my family. Even though we wanted to repay mum she would not accept anything, she would tear up the cheques or send them back. In October last year my mum died. Initially there were three executors to the will, myself and my two elder brothers. The middle brother asked us to give him written authority to be sole executor as it would make the grant of probate quicker. This we agreed to. My brother is now saying that I must pay back all the money that mum gave us. Mums will simply states that all her possessions and money are dived equally between her four children, my sister lives in Canada. There is no official paperwork relating to the money that mum gave us save for her personal accounts that show money being transferred or sent. Does my brother have a legal claim at all? Does the Limitation Act and Statute Barred apply with this type of "loan"?
    Many thanks in advance for any help or advice.
    Tags: None

  • #2
    .
    .
    If your mother gifted to you, the gifts are not part of her estate and do not need to be repaid
    However gifts made within the 7 Years prior to her passing have to be included in the declared estate value.
    There are exemptions to this eg: gifts made out of income, gifts up to £3,000 in each tax year or gifts made to someone on their marriage or civil ceremony.

    Tagging Peridot who will have more detailed knowledge

    Comment


    • #3
      Hi,
      as des8 mentioned gifts made in the 7 years prior to death need to be reflected in the inheritance tax account but there is taper relief on this so if over 7 years there is no tax, leads than 7 years will depend what percentage of the sum gifted is used in the calculation of the estate values. This may help explain:- https://www.gov.uk/inheritance-tax/gifts
      it was up to your mum what she did with her money during her lifetime.
      provided this was not a ‘soft loan’ which would have to be documented agreeing to repay a sum and your mum had full capacity to deal with her assets as she saw fit then I can’t see the executor can go further with this.
      The executor is responsible for the estate at the date she died, of course if there are any untoward dealings or allegations of fraud for example they could be investigated but it doesn’t sound like this is the situation here. Provided all above board then they can’t demand repayment of the gifts.
      I am a qualified solicitor employed by the LegalBeagles forum to provide guidance on a wide range of legal queries. I am happy to try and assist informally, where needed.

      Any posts I make on LegalBeagles are for information and discussion purposes only and shouldn't be seen as legal advice. Any practical advice I give is without liability. I do not represent people on the forum.

      If in doubt you should always seek professional face to face legal advice.

      Comment


      • #4
        Dear all.

        Thank you so much for your timely replies it has settled my mind. It is not about the money more that my brother is now criticising my late mothers actions. She would be very distressed if she knew.

        Thankyou

        Comment

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