Have you heard about cases involving family gifts ending up in court? These issues could involve money, personal property or real property that have been given.
Gifts are an integral part of our lives, yet they can sometimes cause friction among recipients. This article explores some of the issues related to such disputes.
What is a gift?
Gifts are property transfers made out of love and affection and usually cannot be taken back once given. Gifts may be given without consideration or expectation in return, or as part of an exchange requiring something specific be returned in return. Gifts do not fall under the same rules as contracts or quasi-contracts and generally cannot be reversed once made.
Legal battles over gifts typically arise out of family and romantic relationships, often as a result of gifts given or loaned with the expectation that they’ll be returned at some point down the line – such as parents lending large sums of money to their children; ex-lovers arguing over expensive engagement rings given before calling off weddings; grandparents gifting large amounts to their grandchildren as examples.
Courts will look closely at the circumstances and intentions behind any gift given in order to determine its validity. A gift will usually only be enforced if it can be shown that its giver intended it and gave it with that intention in mind; courts will consider all forms of evidence regarding a transaction including written documents, emails, money transfer receipts or tangible items related to that transaction as evidence against its legitimacy.
Law allows for certain exceptions to the general rule that once given, gifts cannot be revoked, such as when someone is mentally incapable of making their decision or when fraud, undue influence, or duress is involved. Furthermore, gift can also be set aside under limited circumstances when donors become sick shortly after giving it or when there is an obvious mistake on all parties involved.
However, in most instances a court will not void a gift just because its giver regrets it or wants their money back. If an individual who gave money away wants their money back from someone they gave it to, they must first go through Small Claims Court or Supreme Court and request for it be reversed in some way.
What can be a gift?
People exchange gifts as a token of affection or generosity. Legally, gifts must be freely given in good faith without expecting anything in return or gain. This includes tangible and intangible items. People may also be sued over gifts given; usually such suits involve money or physical property being given away.
Suits over gifts between close relatives or romantic partners are unfortunately all too frequent. Unfortunately, often there is no written record to refer back to, leaving judges and juries to interpret and assess each donor’s intentions based on circumstantial evidence alone.
One of the greatest difficulties associated with gift giving lies in determining its nature. For instance, someone may give another person jewelry as a token of affection or respect; under certain conditions this would qualify as a gift; under others it might constitute a loan if there’s any expectation that you will return the item (or get something in return) as promised by its donor.
Suing over gifts often occurs because of damage or injury sustained from them. If someone gives someone else something with known defects that could cause injury but fails to inform them about them beforehand, that person could be held liable for negligence.
Gift-related lawsuits often stem from disputes over how long someone is given to hold onto a gift they’ve received. For instance, if they were only given 30 days to secure furniture or electronics they received as a present and have yet to do so, its owner can take them to court to claim possession of it.
No doubt we have all heard stories about gifts that go awry; unfortunately it’s all too common for people to file lawsuits over seemingly insignificant gifts. Although each case will depend on its own individual circumstances and will differ greatly between situations, it’s essential that we understand what can legally constitute as a present so as not to get ourselves in any trouble with friends, family or romantic partners.
How can you prove that something was a gift?
Proving something was given as a gift can be tricky. A lot depends on what the donor intended and on what kind of evidence was available at that time; typically this would include documents and eye witness testimony but other forms of material may also exist. An estate attorney is best equipped to tailor materials presented based on your unique facts and circumstances of a case.
Real property transfers in many states require written documentation from both parties involved before becoming legal. This could take the form of a deed or other similar document; in certain instances there may also be additional requirements such as complying with a Statute of Frauds that must be met.
Other evidence of something being given as a gift includes photographs, video footage, or witness accounts who saw the transfer take place. Such evidence can be particularly valuable when someone wants to take back or tax back what was given – it also helps in instances when relatives take advantage of someone and feel they have been denied fair ownership share of property they were promised by someone.
Can someone take you to court over a gift?
People sue for all sorts of reasons, some quite frivolous. We’re likely all familiar with stories about parents suing their children over purported loans that were misinterpreted as gifts; or an engaged woman seeking the return of her engagement ring after her relationship ends.
Typically speaking, in order to successfully sue someone over a gift they must present sufficient proof that it was actually a loan. Proving this may be difficult but using texts, emails and money transfer receipts as proof can assist your case significantly.
Not to forget is also important because if someone gets hurt while using a gift they didn’t receive from you, you won’t be held liable. Therefore it is vital that when giving a present read through any accompanying instructions and check whether there have been any recalls or known safety issues associated with its usage.
If you are uncertain if something was a gift, a Gibbs Wright litigation attorney can help explain your legal rights and options. Get in touch with us now for a complimentary consultation session.