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  1. #1
    Join Date
    Aug 2012
    Location
    West Georgia
    Posts
    2

    Default Elderly Parent Wants Gift of Money Returned

    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.

  2. #2
    Join Date
    Jul 2010
    Posts
    7,887

    Default Re: Elderly Parent Wants Gift of Money Returned

    You need to speak to an attorney. Elder abuse (be it physical, emotional or financial) is a serious issue. Some states don't play around. I'm not saying that's what you did, but it's likely to be what he alleges happened.

  3. #3
    Join Date
    Oct 2006
    Posts
    16,206

    Default Re: Elderly Parent Wants Gift of Money Returned

    Quote Quoting fvstringpicker
    View Post
    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.
    While the previous reply makes a valid point...you actually have multiple issues here.

    The original gift of the home, made by both the parents and giving them a life estate, probably is not an issue.

    The 40k loan, since it is being repaid, is probably not an issue either, at least in terms of potential elder abuse. However, depending on the documentation surrounding the loan, it might be valid for dad to call the loan in.

    The other 95k is what could be tricky. However, the fact that he wants it back in order to turn around and gift it to another member of the family, in the form of a house, calls more than one member of the family into question as far as potential elder abuse is concerned. Of course, dad's competency in the past as well as now, is a significant factor.

    Do consult a local attorney ASAP. Consult a tax professional as well, because giving anything back to dad that isn't documented as a loan will have gift tax reporting issues for your wife.

  4. #4
    Join Date
    Aug 2012
    Location
    West Georgia
    Posts
    2

    Default Re: Elderly Parent Wants Gift of Money Returned

    It's upsetting its even possibly looked at as elder abuse. Half the ownership of the CDs was transferred to my wife years ago by her mother who said, "I want "S" to have the house and my half of the CDs" Hence, how she became a joint owner with her father. All has been well for more than 6 years. They live across the street and my wife spent untold time taking both to the doctor and other places, even vacations in north Georgia at our expense. I was the only one with my MIL when she died and had to break the news to the other family. He willfully gave the gift to her and she reluctantly took it in good faith. He told her he wanted her to enjoy the money now rather than waiting until he died. He insisted she call the bank and pay off the balance on her car which took about 25% of the funds. He's an retired CSM and always bossed my wife around. The guys old but when tested recently, had a sound mind. Its sicking that nearly a year later, he want the money back. If I had the money I'd give it back, move away and let his granddaughter spend ever last nickle he's got. She already talked him out of nearly $35k for vehicles and $8,000 plastic surgery (boob and fanny lift) Sorry for the rant.
    One question is since the CDs were jointly owned by my wife and her father, would that make the money half hers? Oh, the note supporting the loan is not callable and is, and will be, paid up to date.

  5. #5
    Join Date
    Oct 2006
    Posts
    16,206

    Default Re: Elderly Parent Wants Gift of Money Returned

    Quote Quoting fvstringpicker
    View Post
    It's upsetting its even possibly looked at as elder abuse. Half the ownership of the CDs was transferred to my wife years ago by her mother who said, "I want "S" to have the house and my half of the CDs" Hence, how she became a joint owner with her father. All has been well for more than 6 years. They live across the street and my wife spent untold time taking both to the doctor and other places, even vacations in north Georgia at our expense. I was the only one with my MIL when she died and had to break the news to the other family. He willfully gave the gift to her and she reluctantly took it in good faith. He told her he wanted her to enjoy the money now rather than waiting until he died. He insisted she call the bank and pay off the balance on her car which took about 25% of the funds. He's an retired CSM and always bossed my wife around. The guys old but when tested recently, had a sound mind. Its sicking that nearly a year later, he want the money back. If I had the money I'd give it back, move away and let his granddaughter spend ever last nickle he's got. She already talked him out of nearly $35k for vehicles and $8,000 plastic surgery (boob and fanny lift) Sorry for the rant.
    One question is since the CDs were jointly owned by my wife and her father, would that make the money half hers? Oh, the note supporting the loan is not callable and is, and will be, paid up to date.
    I really don't think its as bad as you may be thinking, but I do think its in your best interest to speak (not retain at this point but speak to ) a local attorney. If dad is of sound mind, then elder abuse is probably not an issue.

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