parents gifted money but now want it back

navydiver_2

Hope some one can give me a bit of advice here or at least point me in the right direction.

2 years ago my job re-located down south, and we had to move, leaving my wifes elderly parent up north, we moved into rented accomodation, while we found a house and sold our house up north.

We eventually sold our house and found a house we wanted to buy and were at the point of putting in an offer when my wifes parents decided they would like to move where we were, they also wanted us to see if we could find a house with an annexe so we could all be close, parents are 87 & 84, so this made sense as we would be on the doorstep if needed.

Parents sold there house and decided they would give us a lump sum to go towards this new house as a "gift" on the understanding that "This is your inheritance, your getting it now you wont get it when we die" ok fair enough, as long as one of them lives at least another 7 years no IHT problems, and even so the amount would still fall below the IHT allowance if they both died as the remainder of the estate would come no where near it.

We bought the new house and we had a large deposit, and took aout a mortgage for the remainder, parents said they did not want anything to do with the paperwork or to be on the deeds or on the mortgage, and being the age they are I doubt mortgage company would have allowed this anyway.

So we settle in to the new house (February 2010) and all goes well until yesterday, when parents tell us they have been to see a solicitor and have decided they no longer wish to live here and now want there money back, and have now changed there mind and say the money was an investment and not a gift.

There is no deed of trust and no paperwork at all, as far as mortgage comnpany is concerned my wife and I own the house and it is only our names on the deeds. The mnoney was given freely and I can prove it was transferred to both of us. And that the money has been put into the house, we have also spent around £30k improving the house and bearing in mind the market we would not get anywhere near what we paid for it

There living costs here are minimal as ther is no council tax to pay and we pay the water, electric, and sky bills

What I would like to know is can they force us to sell our home to get their money back ? Can they take back money that was gifted even though we or they have nothing in writing.

I know its a bit long winded but any help or advice would at help to put my mind at rest

Browntoa

CAN OF WORMS

probably no paperwork on your side to say it was a gift ??

probably none on their side to say it was a loan .....

navydiver_2

Browntoa wrote: »

CAN OF WORMS

probably no paperwork on your side to say it was a gift ??

probably none on their side to say it was a loan .....

None what so ever

Seanymph

If they have seen a solicitor and you haven't then a forum isn't where I would be - I'd be on the appointment list of my own solicitor.

navydiver_2

We are seeing a solicitor on Monday I was just trying to get some idea of what people think.

somethingcorporate

Legally it would be down to your parents to prove it was a loan (and not you that it was a gift) so it is them that have the mountain to climb, especially if there is no paperwork as you say.

Unfortunately you are talking about shafting your parents for a lot of money, hence the can of worms. Take a look at the lending to friends and family threads to understand quite how destructive giving / lending money between family members can be.

I would come to some arrangement and pay them back over the long-term or look to remortgage to give them something towards it. But that's my morality rather than what the legal beagles will tell you.

alfiesmum

As you haven't been charging them rent might that go towards proving your side of things? Surely any monies due to them now would have to be minus the living costs they would have incurred living elsewhere.

I have to hold my hand up and say I clicked on this thread, cos it had an interesting title and I wanted to hear the 'gossip' so to speak, now I feel for you, I really do. Your wife must be going through hell. I wonder what prompted them to seek out a solicitor. I do hope someone comes along with some good advice for you, best of luck with everything.x

girleight@

Could you offer to pay them back £5 a week or something?

duchy

Good grief-what a nightmare.

What on earth has happened to the relationship between you (as a couple) and your parents that they went to a solicitor before talking to you to try and find a solution when you live in the same property ???? Are other siblings a part of this new idea ?

Legally it's a nightmare and you definitely need legal advice but if it goes to court there's a good chance the money and more could be eaten up in legal costs on both sides long before it is settled.

Personally I'd get legal advice so I knew the facts first and then try and sit down with them and talk and discover why they are unhappy and if there is any compromise to be made but it sounds like they are very upset (can't help wonder how you didn't notice or if you did why you let things get to this point or if another family member or friend is pulling their strings). At the very least talking will buy some time whilst you try and review your options and maybe discover that it's something you consider quite minor that has majorly upset them and you can put things right or find a compromise.

<Edit>After a bit of thought.........are they homesick ? It's a huge move at their ages into a completely different area -especially if other family are still up North. Could part of a compromise be you taking them to visit more often, paying for hotels up there or even short term rented property whilst they decide if its what they really want or for "long holidays"? Inviting other family to visit more often etc. Could you help them build a better social circle down South-take them more places etc ?
Really you need to TALK to them and find out ......... if you don't already know.

theartfullodger

Which will be most painful to lose...


- The money ...
- Any contact and involvement with your parents...


Depending on your answer you'll know what you have to do..


Is there something else you ain't telling us??

??? How come all posts including this start with "default" although I for one didn't want this one to... ??

pararct

Would you describe the scenario under oath as you have above? If the circumstances are as you have outlined them, then probably not.
Is there not some way you can negotiate with your parents? Try and work out why all of a sudden they want to move? Has there been some other rift, possibly a birthday or anniversary forgotten?