Gifted Money

Ammerdale

18 months ago, a friend lent me some money to purchase a car. Nothing was signed, and I paid back a set amount each month without fail. After approximately 6 months, this friend gifted me £12,000 pounds, and told me he did not want me to continue to paying the loan back for the car either. However, I insisted on paying the loan back for the car and continued to make the payments. This was just noted in his book, there was no reference to the £12,000 (because this was a gift). My friend told me on numerous occasions that if anything ever happened to him, then the debt would die with him. Sadly, he has now died, and his family can't find his will, and they are going to use an Estate Management Company. I've just been told by this family, that I can expect a letter, requesting I pay this money back. I'm in a state of shock, I've been nothing but honest. Can they do this?

Crabapple

They can ask, yes, but that doesn't mean you have to pay it. I would tell them and the company as and when they get in touch that it was a gift and never intended to be repaid.

Perhaps point out that by contrast the car loan was recorded and you paid it back as agreed.

Ammerdale

Many thanks, Crabapple. I can't believe this is happening. He told me it was between me and him, and nothing to do with his family (he was divorced, no children). I've looked after him for a long time and really miss him, but now I've got this hanging over me, as if I'm some kind of dishonest person, I never asked for anything. I'm extremely worried that they are going to write to me and start demanding I pay up.

g6jns_2

Ammerdale wrote: »

18 months ago, a friend lent me some money to purchase a car. Nothing was signed, and I paid back a set amount each month without fail. After approximately 6 months, this friend gifted me £12,000 pounds, and told me he did not want me to continue to paying the loan back for the car either. However, I insisted on paying the loan back for the car and continued to make the payments. This was just noted in his book, there was no reference to the £12,000 (because this was a gift). My friend told me on numerous occasions that if anything ever happened to him, then the debt would die with him. Sadly, he has now died, and his family can't find his will, and they are going to use an Estate Management Company. I've just been told by this family, that I can expect a letter, requesting I pay this money back. I'm in a state of shock, I've been nothing but honest. Can they do this?

They can ask but you are under no obligation to pay. A gift is, as they say, a gift and that is an end to it. Do not allow yourself to be bullied into returning what is yours. If they do write just reply politely that you owe nothing and that further letters will be regarded as harassment. If they get really stroppy then refer them to the case of Arkell v Pressdram. Let us know how you get on. Good luck.

Ammerdale

Thank you very much G6jns for taking the time to reply. When my friend died, I still owed £400 for the car (ironically, I had just paid more than the set amount back just a week before he died. He didn't want me to pay it back, but I felt I should. He always said that should he die, then the debt "died with him". So, although, the £12,000 was indeed a gift, what do I do about them asking for the outstanding £400 too? I always looked after my friend, and he looked after me too. I really miss him and thought that when his family asked to meet up with them today, it was to remember him, or ask about the day I had to rush him to hospital, however, it was to tell me I could expect a letter from this Estate Management Company. My friend told me he had made a will, but suddenly nobody can find it. I'm at my wits end, especially today, on the anniversary of my own mum's death.

Crabapple

I think you'd have to take a view on the £400. It might be politic to pay it to the Estate, but they can't enforce it really, unless you had a written loan agreement. If you've already paid more than you borrowed then just say you've repaid (I got the impression from your post that there was just a bit of interest outstanding).

Try not to worry and allow yourself to grieve for your friend, and your mum, and just deal with the letter when it comes.

Ammerdale

Thank you again, Crabapple, and for your kind words, sorry I probably didn't make my post very clear, I'm so upset and shocked.


I paid my friend £100 a month back, there was no interest, because he didn't even want me to pay him back. Just before he died, instead of paying him £100 back, I'd paid him £200 back, as I'd been paid for my overtime at work, so wanted to pay extra off the owed amount.


Then sadly, a week later, I had to call the Doctor and rush him into hospital, and he died. I never thought anymore about the loan, because he'd always said the debt would die with him, and all I could think about was the loss of my friend.


I did all his banking for him, and he trusted me implicitly, he would be absolutely devastated if he knew what was happening.


Sorry, I forgot to say, their was no written agreement or anything, he just made a note of all the payments I'd paid him back in a little book, he was very organised, and just liked to keep a note of everything. I paid him by bank to bank transfer, so there is a record of all my payments.

McKneff

Could I ask =


Why did he give you this 'gift' of £12.000


Why didn't you pay off the balance of the car out of this £12,000

Ammerdale

I had looked after my friend for a long time, taking care of him and fetching everything he needed. I was very ill a while ago, and couldn't help him for a short while, he said it hit him how much I did for him. He knew I was struggling with a past debt that I had incurred through no fault of my own, so he suddenly said that he was giving me a Christmas present that he hoped would turn my life around. He told me that he wanted me to forget the loan too, he didn't want that back either. I wouldn't accept his gift at first, as I'd never taken anything in my life, but then realised just what it would mean, he wanted to make my life easier, and this would. After a great deal of deliberation, I accepted it, but told him I would continue paying for the car, as I felt I should, he didn't want me to, but understood why I wanted to.

McKneff

How did his family know about the loan and also about the £12K.

Mojisola

Ammerdale wrote: »

I've just been told by this family, that I can expect a letter, requesting I pay this money back. I'm in a state of shock, I've been nothing but honest. Can they do this?

They can ask but just write back confirming that it was a gift.

Can you imagine what it would be like if everyone who had been given money had to pay it when the gifter died? Daft idea.

Don't be pressurised. If you do get a letter, put it on here and get advice about how to reply (remove any identifying info).