My question involves a person located in the state of: Georgia
About six years ago, my very ill MIL and my FIL transferred their house to my wife, taking back a life estate. A couple of months later, they made my wife a joint owner on bout $140,000 in CDs. All this was done for two main reasons; 1. attempt to avoid probating a will for assets they said were going to my wife anyway and 2. to protect the house in case of large medical expenses if the insurance ran out.
Additionally they were afraid their son, who was disinherited, would contest the will.
In late 2010, my MIL died. A few months later, my FIL wanted to us to pay off our house to give him peace of mind. He loaned us $40,000 out of the CDs which we are repaying. We put about $15,000 with the loan and paid off the mortgage.
In Nov 2011, he wanted to cash in the jointly owned CDs, and put the money in a money market account. My wife cashed them in and set up the MM account. About a week or two later, he told my wife he wanted only $5,000 out of the account and to spent the rest for home improvement or whatever else we wanted to buy; that he wanted us to enjoy the money now. He also promised to give $80,000 from another account to another daughter be a previous marriage although she says she never received the money. He is 88, receives a healthy retirement and saves most of that.
He now wants the $95,000 he gave us and his house back to give to his granddaughter to buy a $200,000+ house that they both can live. He said he has only $100,000 he a invest in this new home and claims we a robbing him if we don't return it. He has recently spend nearly $40,000 on cars for this granddaughter and great granddaughter. He says he's going to an attorney about filing suit don't give the money back. Any advice is appreciated. Its a crazy family.