Solicitors for Challenging Lifetime Gifts

If you are looking to challenge a lifetime gift, our solicitors can help if you are concerned that money, property or other assets were given away in circumstances that do not seem right. This may be because the person making the gift was vulnerable, lacked capacity, was under pressure from someone else, or because the transaction appears inconsistent with their previous wishes. 

There are many perfectly legitimate reasons why someone may choose to make gifts during their lifetime. However, where a significant transfer raises questions, it is important to establish what happened, whether the gift was valid and what options may be available. 

Our specialist Contentious Trusts & Probate team advises both people seeking to challenge lifetime gifts and those defending gifts that have been questioned. 

We are ranked Tier 1 for Contentious Trusts & Probate in the North West by The Legal 500 and advise clients from our offices in Chester, Shrewsbury, Altrincham and the Wirral. 

We know these disputes can involve difficult family dynamics and sensitive questions about capacity, influence and trust. We will take the time to understand what happened, explain the legal position clearly and help you decide the most appropriate way forward. 

Speak to a solicitor about a lifetime gift

When can a lifetime gift be challenged? 

A gift will generally be valid where the person making it understood what they were doing and chose to make it freely. 

Concerns can arise where there is evidence that the person did not properly understand the transaction, was placed under inappropriate pressure or where the circumstances surrounding the gift do not make sense. 

These issues may come to light while the person who made the gift is still alive or only after their death, when their estate is being administered. 

Common areas of concern include gifts that were: 

• Made when the person may have lacked the mental capacity to understand the transaction; 
• Made following pressure, coercion or undue influence; 
• Made to someone who had assumed a position of trust or responsibility over the person's financial affairs; 
• Made by an attorney or deputy outside the scope of their legal authority; 
• Hidden or described as money spent for the person's benefit when it was actually transferred elsewhere; 
• Inconsistent with the person's previously expressed wishes; 
• Disproportionately large when compared with their remaining assets; 
• Made without clear documentation; or 
• Described as a gift when the arrangement may actually have been a loan or money held for another purpose. 

A surprising transaction is not automatically invalid. The important question is whether the evidence shows that the gift was genuinely understood and freely made. 

Challenging a lifetime gift because of undue influence 

Undue influence is one of the issues that can arise in disputed lifetime gifts. 

It may occur where the person receiving the gift has exercised such pressure or influence over the person making it that the decision was no longer genuinely their own. 

Sometimes there may be evidence of actual undue influence, such as threats, coercion or pressure to make the transfer. 

In other cases, the circumstances may give rise to presumed undue influence. This can become relevant where there was a relationship of trust and confidence and the gift is sufficiently unusual or significant that it calls for an explanation. 

For example, concerns might arise where an elderly or vulnerable parent transfers a substantial proportion of their assets to one child who has assumed responsibility for their finances. 

Our guide to undue influence and challenging a lifetime gift explains the legal principles and the evidence that may be relevant in more detail. 

What if the person making the gift lacked mental capacity? 

A person must be capable of understanding the decision they are making when giving away significant money or property. 

Capacity is specific to the decision being made. Someone may be perfectly capable of managing straightforward day-to-day matters but unable to understand the implications of a more complex or substantial transaction. 

Where capacity is in question, we may need to consider: 

• The person's health at the time of the gift; 
• Medical and care records; 
• The value and effect of the transaction; 
• Whether independent legal advice was obtained; 
• What explanation was given to the person making the gift; 
• Who arranged or attended meetings relating to the transaction; and 
• Evidence from people who knew them at the relevant time. 

The timing of the evidence can be important. If you are concerned that someone lacked capacity when a significant gift was made, it is generally better to investigate the circumstances sooner rather than later. 

What if an attorney or deputy made the gift? 

Attorneys and deputies do not have an unrestricted right to give away someone else's money or property. 

Their ability to make gifts is limited, particularly where the proposed transaction is substantial, unusual or benefits the attorney, deputy or someone connected with them. 

Where a gift falls outside the authority available to the attorney or deputy, approval from the Court of Protection may be required. 

Concerns often arise where substantial amounts of money have been transferred to the person managing the donor's finances or to another member of the family without a clear explanation. 

If the wider issue concerns how someone has been managing another person's affairs under a Lasting Power of Attorney, our Power of Attorney solicitors can also advise on the responsibilities involved. 

Where an unauthorised gift has already been made, we can investigate what happened and advise on whether steps should be taken to recover the money or property. 

Was it really a gift? 

Sometimes the dispute is not about whether a gift was valid, but whether there was ever an intention to make a gift at all. 

Money may have been transferred into another person's account for convenience or safekeeping. Funds may have been advanced as a loan with an expectation that they would eventually be repaid. 

Property may also have been transferred as part of a wider family arrangement without the person transferring it intending to give away the entire beneficial interest. 

There may even have been an understanding that the recipient would hold an asset for somebody else rather than own it outright. 

Where the intention behind the transaction is disputed, we will consider the documents, conversations, conduct of the parties and wider family circumstances. 

If the dispute concerns who owns an asset or whether property is being held for someone else, our solicitors can also advise on proprietary estoppel and trust claims. 

What evidence is needed to challenge a lifetime gift? 

Evidence is often central to a lifetime gift dispute. 

The relevant documents will depend on the circumstances, but may include: 

• Bank statements and financial records; 
• Documents recording the transfer; 
• Solicitors' or accountants' files; 
• Medical and care records; 
• Powers of Attorney or deputyship orders; 
• Earlier Wills; 
• Emails, letters or messages; 
• Evidence of previous gifts made by the person; 
• Witness evidence from family members, friends or professionals; and 
• Evidence showing what happened to the money or property after the transfer. 

Where undue influence is alleged, the relationship between the person making the gift and the recipient may be particularly important. 

For example, we may need to understand who was managing the donor's finances, whether they were becoming increasingly dependent on the recipient and whether they had access to independent advice. 

If you believe a gift may need to be challenged, preserving relevant correspondence, financial records and other documents can be an important first step. 

Can a lifetime gift be challenged after someone has died? 

Yes. In fact, suspicious lifetime gifts are often only discovered after the person has died. 

Family members or executors may identify unusual transfers when bank accounts and financial records are reviewed during the administration of the estate, or simply discover that the estate is substantially smaller than expected. 

Where there is evidence that a lifetime gift may not have been valid, the personal representatives may need to investigate whether the asset should properly be returned to the estate. 

The position can become particularly difficult where the recipient of the disputed gift is also an executor or administrator. 

They may have a personal interest in defending the transaction while also owing duties in relation to the estate. In some circumstances, it may be necessary to consider whether an independent administrator should be appointed. 

Where there are wider concerns about an executor's conduct or the way an estate is being handled, our estate administration dispute solicitors can advise on the appropriate next steps. 

What happens if a lifetime gift is successfully challenged? 

The outcome will depend on why the transaction is invalid and what has happened to the asset since the gift was made. 

In an appropriate case, the court may set the transaction aside so that money, property or other assets are returned to the person who made the gift or, following their death, restored to their estate. 

That can have wider consequences for the beneficiaries of the estate and may also affect its administration and tax position. 

Before pursuing a claim, we will therefore look not only at whether the gift can be challenged but also at what a successful challenge would achieve in practical terms. 

What if someone is challenging a lifetime gift made to me? 

Being accused of taking advantage of a relative or vulnerable person can be extremely upsetting, particularly where you believe the gift was freely and properly made. 

We act for recipients defending lifetime gifts as well as those challenging them. 

• The evidence may need to show that the person making the gift: 
• Understood the nature and effect of the transaction; 
• Had sufficient mental capacity; 
• Was making the decision freely; 
• Had an opportunity to obtain independent advice; and 
• Genuinely intended you to own the money, property or other asset. 

We can help you understand the allegations, gather relevant evidence and respond to the claim. 

Where possible, we will also consider whether the dispute can be resolved without the cost and uncertainty of court proceedings. 

Can a disputed lifetime gift be resolved without going to court? 

Often, yes. Once the relevant financial records, professional files and other evidence have been obtained, everyone involved may have a much clearer understanding of what happened. 

That can provide an opportunity to resolve the dispute through correspondence, negotiation or mediation. 

These cases often involve close family relationships and events that took place during a difficult period in someone's life. A negotiated solution can sometimes allow the parties to resolve the financial issues without the additional strain of contested litigation. 

Where settlement is sensible, we will explore it with you. 

If court proceedings are necessary to recover an asset or defend a valid gift, we can pursue or defend the case and work with specialist barristers and other experts where required. 

What does it cost to challenge a lifetime gift? 

Cost is an important consideration in any lifetime gift dispute. 

The cost of resolving a claim can sometimes be substantial and, in some cases, could outweigh the value of the asset being disputed. 

We will therefore consider proportionality with you from the outset. 

The likely cost will depend on matters including: 

• The value of the gift; 
• The complexity of the transaction; 
• How much evidence needs to be obtained; 
• Whether medical or other expert evidence is required; 
• How the other parties respond; and 
• Whether the matter can be settled or proceeds to court. 

We will explain the likely costs, risks and potential outcomes so that you can make informed decisions as the dispute progresses. 

We offer a range of funding arrangements, including traditional hourly rates and fixed fees in suitable cases. You can read more about our Contentious Trusts & Probate funding options. 

Why choose Aaron & Partners for a lifetime gift dispute? 

Questions about lifetime gifts can involve complex law, but they are rarely just legal problems. 

They may involve a parent, sibling, carer or another person who was trusted to help manage someone's affairs. They can also require difficult questions to be asked about mental capacity, vulnerability, family relationships and financial decisions made many years earlier. 

Our specialist Contentious Trusts & Probate team is ranked Tier 1 for Contentious Trusts & Probate in the North West by The Legal 500. 

We regularly advise on disputes involving: 

• Undue influence; 
• Mental capacity; 
• Suspicious transfers of money and property; 
• Gifts involving attorneys and deputies; 
• Elderly or vulnerable people; 
• Disputed loans and family financial arrangements; 
• High-value and complex estates; and 
• Conflicts involving executors and beneficiaries. 

Our approach is practical and partner-led. We will take the time to understand the family circumstances behind the transaction as well as the legal issues. We can then give you a clear assessment of your position and work with you on the most appropriate strategy. 

Challenging lifetime gifts across England and Wales 

We advise people challenging and defending lifetime gifts throughout England and Wales and regularly work with clients by telephone and video as well as face to face. 

If you would prefer to meet us in person, our specialist teams are available through our Chester office and Shrewsbury office, with appointments also available from our Altrincham and Wirral offices. 

This gives clients across Cheshire, Shropshire, Greater Manchester, the Wirral and further afield access to our specialist Contentious Trusts & Probate team. 

Whether you are concerned about a suspicious transfer, dealing with a disputed estate or defending a gift that was genuinely made to you, we can help you understand your position and decide what to do next. 

Frequently Asked Questions About Challenging Lifetime Gifts 

Can you challenge a gift made before someone dies? 

Yes. A lifetime gift may potentially be challenged while the person who made it is still alive where, for example, there are concerns about mental capacity, undue influence or whether the transaction was properly authorised. 

The appropriate action will depend on the circumstances and whether the person is able to make decisions for themselves. 

Can a lifetime gift be challenged after death? 

Yes. Disputed gifts are often discovered during the administration of an estate. 

Personal representatives or beneficiaries may need to investigate whether the transaction was valid and whether money or property should be returned to the estate. 

Can a lifetime gift be challenged because of undue influence? 

Potentially. 

Where the evidence shows that a gift was made because of undue influence rather than the donor's free and informed decision, it may be possible to ask the court to set the transaction aside. 

Can an attorney give themselves money? 

An attorney only has limited authority to make gifts from the donor's assets. 

Substantial or unusual gifts, particularly those benefiting the attorney personally, may fall outside those powers and require authority from the Court of Protection. 

What if money was transferred but was not intended as a gift? 

The legal position will depend on the evidence. 

The money may have been transferred as a loan, for safekeeping or under an agreement that the recipient would hold it for somebody else. We can investigate what was intended and advise on ownership and recovery. 

What happens if a lifetime gift is set aside? 

Depending on the circumstances, the recipient may be required to return the money or property to the person who made the gift or to their estate. 

The precise outcome will depend on the legal basis of the challenge and what has happened to the asset since it was transferred. 

Is there a time limit for challenging a lifetime gift? 

The time limit can depend on the legal basis of the claim and the circumstances surrounding the transaction. 

Because evidence can become more difficult to obtain over time, it is sensible to seek advice as soon as concerns arise rather than assuming a claim can be brought later. 

Speak to Our Lifetime Gift Dispute Solicitors

If something about a lifetime gift does not feel right, you do not need to know the precise legal basis for challenging it before speaking to us. 

Tell us what happened, why you are concerned and what you know about the transaction. We can help establish whether the gift was valid, what evidence is available and whether any steps should now be taken. 

If you have received a gift and somebody is challenging it, we can equally help you understand the allegations and protect your position.

Speak to our contentious trusts and probate team