Lifetime gifts are the ways in which our loved ones can share some of their wealth or assets with us while they are still here.

As a person approaches the end of their life, they may be more inclined to give lifetime gifts to reduce the risk of being hit with Inheritance Tax.

However, there are times when a lifetime gift may not have been freely given and your loved one’s sudden generosity might have sparked suspicion.

If you are concerned about a lifetime gift your loved one has given, then you need to know your legal rights to challenge it.

When can a lifetime gift be challenged?

If you have concerns about whether the decision to give a lifetime gift was genuine and properly made, then it may be possible to challenge the gift itself.

The most common grounds for challenging a gift include:

· Lack of mental capacity – the donor did not fully understand what they were giving away or the consequences of doing so.

· Undue influence – the donor was pressured, coerced or manipulated into making the gift.

· Failure to properly transfer the gift – particularly relevant for collectables or personal items

· Fraud or misrepresentation – where the donor was misled about the purpose or effect of the gift

The risk of being taken advantage of increases as a person ages, becomes ill or suffers cognitive decline.

Where you have noticed that the lifetime gift is suspicious, then the giving of the gift can be rendered void and the gift reversed by a court.

How do you challenge a lifetime gift?

Before a court can take action, it is necessary to establish the facts around the lifetime gift.

This means that you will need to have carefully examined how the gift was made and gathered the appropriate evidence.

This can include:

· Medical records showing impairment or vulnerability

· Financial records showing when and how the assets were transferred

· Witness statements from friends, family or professionals

· Correspondence that shows the donor’s intentions

In the case of personal items or collectables, it is necessary to formally transfer ownership of them to another party and this should be done in writing.

If this has not been evidenced, then the gift giver is still the legal owner of the item even if the gift was given willingly.

If you feel that there has been an instance of illegitimate gifting, it is vital that you seek legal support.

We can help you understand your rights and how best to approach the situation with tact and care.

Establishing a Lasting Power of Attorney is a good preventive measure for exploitation, as it legally declares a person incapable of making such decisions when certain trigger conditions are present.

We know how caring the Essex community are but we want to make sure that gifts are given fairly and by those with the capacity to do so, free of coercion.

At Palmers, we firmly believe that lifetime gifts should not be taken advantage of and we want to ensure the donor’s true wishes are respected and that assets are dealt with fairly. Speak to our team today for professional legal support in managing your loved one’s lifetime gifts.