Verbal contract

[FireMelon]

This is an unusual situation regarding a verbal contract over a monetary gift.

DAILY MAIL OR OTHER LAZY JOURNOS PLEASE MOVE ON

A few years ago, my parents wanted to gift a considerable sum to me and my brother. However, at the time he was more in need of it than I was so we all agreed that they would gift him the full amount and that when they eventually died, he would reimburse me half of the gift from his share of the inheritance. This was not put in writing or in the will.

I expect you can tell where this is going. Both of our parents have since died and my brother is refusing to give me my share of the gift. He has roughly admitted in email to me that the agreement with our parents was made verbally but he says that as it's not in the will, it doesn't count.

Is it worth me trying to pursue a claim based on a verbal contract between four people (two now deceased) and the proof that he received a huge amount of money at the time and I got nothing? Does that meet the legal criteria of a verbal contact?

[prh47bridge]

Possibly given the evidence of the email. You need to take proper legal advice.

[FireMelon]

One point I forgot to mention. My brother has said that my mum told him she had changed her mind and didn't want me to have half of the gift after all.

I don't know if he has this in writing or whether it's just his say so but would it make a difference any way. Would it nullify the original verbal agreement between all four of us or would the agreement still stand?

[Octavia64]

Proof that he got a large amount of money at the time doesn't show that there was an agreement to balance it up as it were.

If he has admitted it in writing then it is worth consulting a lawyer.

Otherwise he is likely to say that the intention was not to "balance up" and it is his word against yours.

Probably worth consulting a lawyer anyway but in the absence of evidence it is likely to be difficult.

[FireMelon]

This is some of what my brother initially said in email to me:

'I just want to make it clear that at no point did I say that I intended to withhold the money.'

'I recognise my own selfishness and sense of entitlement, it is not fair of me to ask or expect you to wait for your money while I sort my shit out, I know that'

And talking about our parents:

'They wanted to be fair and give you the same amount but decided they could not afford to do so until their death.'

I am hoping that this shows that the verbal agreement was made and that it was their intention for it be balanced after their deaths.

But now my brother is saying

'If they are not in the Will, as far as the law is concerned, they don’t exist unless there is some other written and legally binding agreement'

[WhiteLeopard]

You could try telling him that you've contacted a lawyer and are intending to pursue this in court and you have emails etc to give in evidence. That might work without you having to actually go to court?

[prh47bridge]

If they are not in the Will, as far as the law is concerned, they don’t exist unless there is some other written and legally binding agreement

He is wrong. An agreement does not have to be written to be binding.

[FireMelon]

That's what I thought @prh47bridge

I have had a google and I think his emails show offer and acceptance of the gift with the intention that it be shared once both parents are deceased. But I don't know if it's enough.

This was his last message to me:

'As previously discussed, If I do decide to make a gift to you then that is my decision to make, I am under no legal obligation.'

[22mumsynet]

It’s possible the rule against ‘double portions’ may help you. This outlines where it can apply.https://www.clarionsolicitors.com/articles/inheritance-and-gifts-what-is-the-rule-against-double-portions#:~:text=The%20applicable%20law,-The%20presumption%20against&text=The%20underlying%20idea%20is%20that,receive%20after%20the%20parent%20dies.

[FireMelon]

@22mumsynet Thank you!

The gift was originally given so that my brother could buy his wife's share of their house as they were separating. They never would have gifted such a large sum to just one child and wanted me to have the same but they just couldn't afford it at the time. This is why the arrangement was made to balance the gift after their deaths.

So maybe it could be seen as an advance on inheritance?

[22mumsynet]

It’s worth getting some legal advice. Who are the executors of the Will? What stage is the estate administration at? Where is the money held? Has any property been sold? Is there enough in the rest of the estate so that it can now be balanced to you out of that without him ‘gifting’ to you. Ie if he was given 50k and estate is now 200k, you get the first £50k to equalise then £150k is split between you so £75k to him and £50k + £75k to you. Or is the rest of the estate not enough to do it this way? If you are executor you have some control over this bet should definitely seek legal advice.

[JacobsCrackle]

You have a few issues, OP- lack of evidence of the agreement (the emails are helpful but he could frame them in a way that suggests they don’t evidence what you claim), lack of intention to create legal relations (this is a necessary part of an enforceable contract and between family members there’s a rebuttable presumption of no such intention, which would be hard to rebut in the circs) and privity of contract (the common law rule that you can’t enforce a contract you’re not party to- it’s not clear to me that you were a party to the contract.)

If it’s a lot of money I would see a solicitor. A lawyer’s letter might get him to pay up. But if it goes to court I think you’ll have a struggle.

[FireMelon]

We are joint executors of the will. Probate has been granted and my parents' house is currently under offer and proceeding. If all goes well, we will be in a position to distribute the proceeds within the next few months. I am actually the sole a/c holder for the estate as I've been managing everything. However, he would not give permission for me to take funds directly from the a/c. He says it has to be distributed under the terms of the will, which I do agree with and I would never retain any funds without his permission.

@JacobsCrackle thanks for your thoughts. I'm wondering if I should forget trying to prove a verbal contract and instead try to put a claim on the estate under the double portioning rule. I will have to seek legal advice on this as it is a considerable sum.