Family want us to give financial gift back....

[Liskenly]

A couple of years ago DH's grandfather gave us a substantial financial gift (he was very wealthy). We'd brought a house that needed a huge amount of repairs and this money funded all of the repairs. We never asked for this money it was a spontaneous gift - his view was that we'd make better use of it than he did. We were very close to him and cared a lot for him prior to his death late last year. He has sadly now passed away. He has left the main part of his estate to be split between his 12 grandchildren (many of whom haven't seen him in the last 5 years). They are now insisting we give the gift back (taking it from the inheritance) so it can be divided between the 12 grandchildren with the rest of the of the estate (it has turned rather nasty). We're not wealthy, but we are comfortable, but can't afford to give back the money - basically it means we'd have to give £10k back to them as well as not have our 'share' of the inheritance. I've not met 5 of them but now recieving really nasty emails, texts etc. What would you do?

Tell them to stop with the nasty texts: keep them as evidence. It’s harassment and you shouldn’t put up with it.
Enjoy your Grandad’s gift. It is your now.

I wouldn’t ignore them because this is something that’s unlikely to go away. Entitlement and money combined can breed a tenacity like no other.

I’d respond to all of them stating that the money was freely given as a gift and as such will not be returned, nor can it be offset against any share of the will. I’d also make it clear that you will not enter into any further discussion on the matter.

If they won’t let the matter drop then I’d engage a solicitor and let them sort it out.

HighlilyUnlikely, the OP can confirm but my reading was a1/12th share is less than the OP's gifted sum so the repayment of £10k plus receiving nothing would put them in the same position as the other 11 beneficiaries.

You need legal advice. My step-dad had this with his brothers when his father passed. It transpired that some of the siblings had already received their "share" over the years, leaving his dad with little money except the equity in his home. It ended up turning quite nasty, and now two of his brothers no longer speak to him. Solicitors determined that those who had already received their "share", whether it be a gift of loan, should not benefit from the will.

Agree with what everyone else has said. Whilst they can’t take your gift back, it would be used in the inheritance tax calculation (done on estate not recipient). However you can ignore £3k per year (think that the fright value - please check) as a tax free gift.

This case up in my MIL will as she had given us a deposit for a house. Simpler in that case though as DH was sole recipient.

Also, it’s utterly irrelevant whether he saw the grandchildren or not. His will stated that the money was to be split among all his grandchildren, so that is what will happen.

For example, if the estate is worth 600,000 after tax, so each grandchild gets 50,000 pounds. But the gift from the grandfather was 150,000 pounds, taxed at 40%, then they are right that you owe 10,000 pounds plus your share.

By the way, my maths sucks, but this is just an example of how it may work.

it wasnt your husband's grandfather's wish for you to pay it back or forgo the inheritance, they can jog on

Absolutely ignore them.

You need to check your position with regard to IHT on the gift but other than that they can go whistle.

They can’t stop your DH receiving his share of the estate.

Money really does bring out the worst in people.

Ignore them. My nan gave me a large cash gift a few years ago to put towards my Ivf. She has since sadly passed away and her estate is currently being divided up as per her will. The solicitor involved is aware of the cash gift but as it doesn't take the estate above the tax threshold nothing will change.
I don't think my cousin's are overly happy but considering they never really bothered with my nan when she was alive (I provided a lot of care - 3/4 visits a week) I am not bothered by their opinions.

It might be worth having a conversation with a solicitor as others have already suggested.

The clue's in the word "gift". If the donor wanted it to be paid back or taken out of your inheritance, presumably he would have said so and changed his will. Are all these grandchildren also planning to give back the gifts he has given them in the last few years?

If inheritance tax is payable on the gift, it will be payable out of the estate, not by OP.

I would tell them to piss off

Ignore them

Are solicitors dealing with the estate? If so, you need to tell your relatives that it is nothing to do with you and direct them to the solicitors. And then block them.

You'd like to think death would bring out the best in people. It really doesn't.

Block them and carry on.

I agree with PP you say a couple of years so that's less than 5 and the gift will be counted as part of his inheritance so you do need to seek legal advice.

Ignore them. Block and restraining order if needs be. Cheeky fuckers.

You need to go through solicitors only, and refer anyone contacting you to the solicitors, and they can be the fair 3rd party dealing with it. You need to show willing, as it's fair enough that it's taxed I'm afraid.

the share must be more than 10k as she said the bulk was between 12 ie over 50 %
well 12 X £10k is 120K if that is more than half then there would be no inheritance tax, inheritance tax threshold is 325K and OP indicates some was paid which suggests an estate of around 350K minumum, if grandfather was predeased by his wife her allowance could be added on making it 650K, there is tapering relief on a gift depending on how many years before death it was given upto 2 years no relief then for 2 or more it tapers then no tax at all after 7

Ignore them - it was a gift and there is nothing they can do about it. If they pursue it, they will end up spending whatever is left in your GF's will trying to get it back.

Absolutely ignore them! The estate is what was left when grandfather died - not everything he had in his possession several years ago!

This!

Otherwise you'll all be handing back the value of birthday presents etc.

And I'll bet he has given gifts t the others, too - it's just that they know about yours (how?), but you don't know about anything they were gifted.

The past is the past, a gift is a girl.

Surely, too, you'll have a share in the estate? Why will you have to give back 10 grand AND forgo your share? Or os the 10k + share what the gift came to? Because if it is that much, theremight (just might) be something to pay back.

However, I would have thought (NB I am NOT a lawyer) that you might have to pay tax on the value of the gift, but that would be the end of it - you would still be able to keep the gifted money, and be entitled to your share of the inheritance.

The GF wanted you two to have it - if he didn't, he wouldn't have given it to you.

(IME it's always the ones who never visited who make the most noise about getting their share)

As it was a gift, not a loan, then it is yours to keep.

Inheritance tax may be due, payable out of the estate.

I think you will need to engage a solicitor to give you advice, and to write a stern letter to the executor outlining the position. You are not personally responsible for the IHT that your DGF's gift to you created, the estate is. Once all the IHT is paid, then the residual estate should be split 12 ways in line with the will. You should get the same amount as all other grandchildren in addition to his gift to you.

I think your dh should contact the solicitor to discuss the position. If you have anything in writing to support that it was a gift, it would be helpful. I would not acquiesce to the other beneficiaries demands.

Bunch of cocks. Ignore them