Savings at the time of death query

ggordster

Hi didnt really know where to post this but here goes. About 10 years ago my grandmother gave me some money to start a business there was no agreement signed nothing was put in writing. I agreed that i would pay her back one day but she always said not to worry as when she died the money was mine anyway. Sadly my grandmother passed away from cancer and we have discovered she didnt leave a will, she had no property or other savings but now her daughter is trying to get the money my grandmother gave me 10 years ago. She has written me a letter stating i owe her this money that is in a bank account in my name......i am just wondering if she has any legal right to the money in my bank even if she can prove my grandmother original gave it to me???

Archi_Bald

As soon as money is in a bank account in your name, it is legally yours, even if that money has been gifted. If there is nothing in writing of any sort, there is no reason to talk about what conversations you and your gran had over the money.

If the gift is less than 7 years old, it forms part of the estate and inheritance tax is due if the value of the estate is greater than £325K.

May be seek some legal advice, even if you only ask the CAB, on how to respond to the letter you got claiming the money.

ggordster

I did think that but as it is family i am looking at it in a different light. If an outsider was asking for the money i would be laughing at the letter. We are only talking about 10k so its not even a huge sum of money. I have an appointment at the CAB office Fri to get some advise too. Thanks for your help

Mojisola

ggordster wrote: »

About 10 years ago my grandmother gave me some money to start a business there was no agreement signed nothing was put in writing. I agreed that i would pay her back one day but she always said not to worry as when she died the money was mine anyway.

Sadly my grandmother passed away from cancer and we have discovered she didnt leave a will, she had no property or other savings but now her daughter is trying to get the money my grandmother gave me 10 years ago. She has written me a letter stating i owe her this money that is in a bank account in my name......i am just wondering if she has any legal right to the money in my bank even if she can prove my grandmother original gave it to me???

No, she doesn't have any right to the money.

Don't get drawn into discussions. Keep it short and simple - grandmother gave (not loaned) me the money.

ggordster

Mojisola wrote: »

No, she doesn't have any right to the money.

Don't get drawn into discussions. Keep it short and simple - grandmother gave (not loaned) me the money.

would it make a difference if it was given or loaned?? just want to cover all areas as my aunt has given me 14 days before she takes it to court......

CLAPTON

ggordster wrote: »

would it make a difference if it was given or loaned?? just want to cover all areas as my aunt has given me 14 days before she takes it to court......

of course it makes a difference if it was given or loaned;
'given' and 'loaned ' clearly have different meanings

ggordster

CLAPTON wrote: »

of course it makes a difference if it was given or loaned;
'given' and 'loaned ' clearly have different meanings

I understand that but in this instance with nothing in writing how can it make a difference?

Mojisola

CLAPTON wrote: »

of course it makes a difference if it was given or loaned;
'given' and 'loaned ' clearly have different meanings

Absolutely.

If there isn't a loan agreement or any other paperwork between you and Gran describing the money as a loan and Gran didn't make any attempt to get you to repay the money over the last ten years, her intention was clear - the money was a gift.

Don't get into discussions - well, she said 'this' or 'that'; I offered to pay it back (showing in your mind you considered it a loan); Gran said it would be left to me in her will (it wasn't); etc.

Keep it simple and keep saying the same thing - Gran gave me the money as a gift.

Gran's daughter (your Mum/Aunt?) can't prove anything and I can't see how she has any recourse to law in this situation.

xylophone

my grandmother gave me some money

I agreed that i would pay her back one day

Some confusion here as to the exact nature of the transaction?

ggordster

i was given the money but felt awful for taking it so i offered to pay the money back once my business took off as a goodwill gesture. My gran wasnt bothered and just said that there was never a problem as at the end of the day it would be left to me.

Mojisola

ggordster wrote: »

About 10 years ago my grandmother gave me some money

I agreed that i would pay her back one day

but she always said not to worry

as when she died the money was mine anyway.

If Gran said on several occasions that she didn't want the money back, in her eyes in was a gift.

If ggordster mentions trying to pay it back, that could open up the possibility of the relative claiming it was a loan.

If ggordster mentions that Gran intended to leave it to him/her in a will, that could also provide an avenue for the relative to say it was a loan as Gran obviously didn't put that in writing.

Without anything in writing and it happening so long ago, I can't see any grounds for pursuing this legally.