Challenging A Lifetime Gift

People make gifts from their estate during their lifetime for many reasons. Gifting money, property, or business shares can reduce inheritance tax on an estate.

It also means beneficiaries have the resources they need now, rather than having to wait until a person has passed away.

However, it’s important to know that a lifetime gift is made for the right reasons and is in accordance with the wishes of the person making it (known as the donor).

Our solicitors could help you challenge a lifetime gift if:

The donor didn’t have mental capacity to do so
Someone with power of attorney over the person’s financial affairs made the gift on their behalf without the approval of the Court of Protection
The person had mental capacity but someone pressured or coerced them into making the gift (known as undue influence)
The gift was the result of fraud.

In some cases, a lifetime gift may have also been made deliberately to avoid a claim being made on the estate once the person has died. This could be to prevent someone making a claim for financial provision under the Inheritance Act 1975, or to stop creditors taking part of the estate to settle the deceased’s debts.

In some cases, gifts are made with the deliberate intention of trying to avoid having to pay care costs. These types of gifts can be challenged if they are designed to circumvent the law.

Our Will disputes team is the largest in the country, with offices across the UK. We have the resources and expertise to resolve your claim, however complex. We also have particular experience in cases where rural estates or complex international assets are involved.

Call today on 0345 604 4895 to speak to one of the team – or fill out our online form and we’ll call you back.

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Challenging A Lifetime Gift - More Information

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Frequently Asked Questions

Why Make A Lifetime Gift?

Lifetime gifts can be an essential part of legacy planning, especially when an estate is large and complex. They allow an individual to control how they pass on certain assets and can help reduce the tax payable on their estate once they die.

Some common reasons to make a lifetime gift include:

No inheritance tax – by making a lifetime gift of money or property, an individual can ensure their loved ones receive the full value of any assets
Efficiency – the gift is available immediately and doesn’t get tied up in probate or any disputes over the estate
Greater control – by making lifetime gifts of assets, an individual can know their estate is being passed on in the way they want
Business succession – gifting shares can be especially important for business owners planning for the future of their company

When used effectively, lifetime gifts can be a useful tool in estate planning.

If you want to challenge a lifetime gift, call the team today on 0345 604 4895 or fill out our online form and we’ll call you back.

What Makes A Lifetime Gift Valid?

As with any part of estate planning, it’s vital any lifetime gift is legally valid and is a true reflection of the individual’s wishes.

There are certain conditions that make a lifetime gift valid:

It needs to be made with the full knowledge and understanding of the individual – this means they have to be of sound mind and not be unfairly influenced or pressured when they make the gift
If the individual has lost mental capacity to look after their own financial affairs, any gift must have the approval of the Court of Protection
It can’t be made through fraud or forgery
The gift cannot be made to avoid paying debts, or to purposefully stop someone inheriting who has a claim on the estate.

If you are worried that a lifetime gift is invalid, call our team today on 0345 604 4895. Or use our online form and we’ll call you back.

What's The Difference Between A Lifetime Gift And A Deathbed Gift?

While both gifts are made while an individual is still alive, there are important differences between lifetime gifts and deathbed gifts.

A lifetime gift is not made by someone who thinks they are about to die. It can be just an act of generosity or a deliberate part of estate planning.

A deathbed gift is made by someone who expects to die soon. It is not part of any pre-emptive estate planning and is usually a verbal agreement. While the gift will not take effect until the person has died, they usually need to pass over some symbolic token of ownership to make it binding – the keys or deeds to a property, for example.

Visit our page on Deathbed Gifts And Wills for more information.

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