Gift from family now claimed to be a loan

Legacy_user

dandelion66_2

Help....

Seven years ago a member of my family gave me over £5000 as a gift. They stated at the time that they wanted to see their family enjoy the money and that was the reason for the gift.

We fell out in recent years and now they claim that the money was a loan and that they want it back.

My questions are as follows:
1/ There was no written declaration that this was a loan - is that sufficient enough to prevent a claim?
2/ This was over seven years ago - and I might be wrong - but isn't there something in the Statute of limitations that states a debt is written off after x amount of years?

Answers much appreciated

harryhound

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=25_liability_for_debts_and_the_limitation_act

Beware of acknowledging that there is a sum of money involved - just ignore it.

Mojisola

dandelion66 wrote: »

My questions are as follows:
1/ There was no written declaration that this was a loan - is that sufficient enough to prevent a claim?
2/ This was over seven years ago - and I might be wrong - but isn't there something in the Statute of limitations that states a debt is written off after x amount of years?

Don't raise the issue of statute of limitations - it suggests that you are admitting it was a loan.

Stick with the one thing - It was a gift, it was a gift, it was a gift.

fermi

Moved to it's own thread.

pompeyred

I don't think you have much to worry about, normally in these circumstances, the biggest issue is that you may fall out with the 'gifting' family member but since that relationship appears to have broken down then it is purely a matter of legal argument.

There will have to be evidence to satisfy that a loan existed and that there was a binding agreement to cover repayment (even though the repayment can be 'on demand' and formed in a completely verbal manner).

It could turn out costly for them to bring you to court as the MCOL route still requires a justifiable basis, to a judge this will look like a family squabble and they will want to see the basic requirements fulfilling 'this loan'.

You've nothing to worry about, stick to your guns with it being a gift and if necessary use it in any defence, did others get moneys in the same manner, were these loans....?

iolanthe07

The Statute of Limitations does not write off loans (except in Scotland). It merely makes them unenforceable through the courts. As there is no question here of the money being a loan when you received it, I agree with mojisola that you should not even mention the Statute of Limitations.

fermi

Are they threatening court action?

Davyly

They need proof it was a loan even if they are threatening action. It's hard to see how they could get this.