Hi there,
My wife and I initially received, for all intents and purposes, a gift of money in 2014 from my wife's parents. My wife says that her parents offered us some money to help us with investments. There was nothing to our knowledge that it was anything but a gift. We used the money to invest in property.
Fast forward to 2018, the parents have suddenly demanded that we pay interest on the gift, claiming that it was loan. We've disputed this, saying that it was a gift. The amount gifted was significant, so it would cause us significant financial issues given that we've invested money believing it was a gift. The parents are not under financial hardship (if anything, they're doing quite well).
There is no written contract, no verbal contract (although the parents claim they had said they'd need the money back someday), and no financial repayments made to them.
Initially, my wife and I were quite emotional, and in order to try and keep the peace, agreed to give them the money in the near future. However, upon reflection, we're deciding not to because this is unfair- we would not have taken the "gift" if it was a loan. My father in law has texted my wife with his bank details, and my wife has responded saying that we'll pay them 1/3rd of the amount requested this year, 1/3rd next year and the remaining in the year after. She used the words "the money we owe you" in a text message recently, this was not to imply that we agreed that it was loan.
Legally, if we decide to not give them the money, where do we stand?
If we do give them the money voluntarily, can they pursue us for interest owed, and a claim to the investment properties that we used their "gift" money to invest in?
This is a very emotionally charged situation, any help and advice would be great.
My wife and I initially received, for all intents and purposes, a gift of money in 2014 from my wife's parents. My wife says that her parents offered us some money to help us with investments. There was nothing to our knowledge that it was anything but a gift. We used the money to invest in property.
Fast forward to 2018, the parents have suddenly demanded that we pay interest on the gift, claiming that it was loan. We've disputed this, saying that it was a gift. The amount gifted was significant, so it would cause us significant financial issues given that we've invested money believing it was a gift. The parents are not under financial hardship (if anything, they're doing quite well).
There is no written contract, no verbal contract (although the parents claim they had said they'd need the money back someday), and no financial repayments made to them.
Initially, my wife and I were quite emotional, and in order to try and keep the peace, agreed to give them the money in the near future. However, upon reflection, we're deciding not to because this is unfair- we would not have taken the "gift" if it was a loan. My father in law has texted my wife with his bank details, and my wife has responded saying that we'll pay them 1/3rd of the amount requested this year, 1/3rd next year and the remaining in the year after. She used the words "the money we owe you" in a text message recently, this was not to imply that we agreed that it was loan.
Legally, if we decide to not give them the money, where do we stand?
If we do give them the money voluntarily, can they pursue us for interest owed, and a claim to the investment properties that we used their "gift" money to invest in?
This is a very emotionally charged situation, any help and advice would be great.