Lifetime Gift Disputes
Compassionate, proactive guidance during lifetime gift disputes
When a family member gives away significant assets during their lifetime, questions can arise about whether the gift was genuinely voluntary. If you believe a loved one was pressured, misled, or lacked the mental capacity to understand what they were doing, you may have grounds to challenge that gift.
Working closely with our wider Inheritance Disputes team, we combine technical expertise with a sensitive, thorough approach to help you achieve a resolution that reflects the true intentions of your loved one.
How we can assist with lifetime gift disputes
Our team advises on a broad range of matters involving disputed lifetime gifts, including:
- Challenging a lifetime gift made under undue influence
- Disputes involving lack of mental capacity to make a gift
- Claims arising from elder financial abuse or exploitation
- Disputes involving gifts made shortly before death
- Recovery of gifted property or assets
- Setting aside a gift obtained by fraud or misrepresentation
- Disputes involving the presumption of advancement
- Court proceedings where a gift cannot be resolved without formal intervention
Have a question? Please read our FAQs below or get in touch for tailored advice.
Speak to our lifetime gift dispute solicitors
To discuss your with a solicitor who truly understands your matter, please get in touch with our team today.
Why choose Longmores for lifetime gift disputes?
- Our Inheritance Disputes team has in-depth experience of disputes involving lifetime gifts and estate planning
- Our lawyers are recognised in leading legal directories, including the Legal 500, for their technical knowledge and quality of client care
- Several members of our team hold membership of the prestigious Society of Trust and Estate Practitioners (STEP), reflecting the depth of expertise they bring to complex matters
- We focus on finding efficient, cost-effective routes to resolution wherever possible
- We explain your legal position and your options in straightforward terms, so you can make informed decisions with confidence
Speak to our gift dispute solicitors
To discuss your with a solicitor who truly understands your matter, please get in touch with our team today.
What are lifetime gifts?
A lifetime gift, also known as a gift inter vivos, is any transfer of money, property, or other assets made by a living person to another individual without payment in return.
Lifetime gifts are common in estate planning and can carry significant implications, particularly in relation to inheritance tax planning.
When can a lifetime gift be challenged?
There are several legal grounds on which a lifetime gift may be disputed or set aside. The most common are:
- Lack of mental capacity at the time of the gift
- Actual or presumed undue influence by the recipient or a third party
- Fraud or fraudulent misrepresentation
- Duress or coercion
- Mistake as to the nature or effect of the transaction
Undue influence and lifetime gifts
Undue influence arises where the Will of the donor is overridden by pressure from another person, preventing them from acting freely. There are two forms recognised by the courts.
Actual undue influence involves direct pressure, coercion, or manipulation that can be evidenced by specific acts.
Presumed undue influence arises in certain relationships where an imbalance of trust and influence is assumed, such as between a parent and adult child, a patient and carer, or a financial adviser and client.
Lack of mental capacity
To make a valid gift, a donor must have the mental capacity to understand the nature of the transaction and its consequences.
The level of capacity required is proportionate to the complexity and significance of the gift. A larger or more consequential gift demands a higher degree of understanding.
This means that a person living with dementia or another cognitive condition may retain sufficient capacity to make a modest gift but not a substantial one.
Where there are broader concerns about an individual’s ability to manage their own finances, it may be appropriate to involve the Office of the Public Guardian.
Gifts made under duress or fraud
Duress and undue influence are related but legally distinct.
Duress involves illegitimate pressure, such as threats of harm, that leaves the donor with no real choice but to make the gift. Undue influence, by contrast, typically arises from a relationship dynamic rather than an explicit threat.
Fraudulent misrepresentation occurs when a person makes a false statement of fact, knowing it to be untrue, and the donor relies on that statement in deciding to make the gift.
These cases can be complex, so gathering evidence quickly is essential. Our team will advise you on what is required and the most effective approach to building your claim.
Donatio mortis causa (deathbed gifts)
A donatio mortis causa (DMC) is a gift made in contemplation of death, typically where the donor believes they are about to die. For a DMC to be valid, three requirements must be satisfied:
- The gift must be made in contemplation of the donor’s imminent death
- The gift must be conditional on the donor actually dying as anticipated
- The subject matter of the gift must be delivered to the recipient during the donor’s lifetime
A DMC can be challenged if it fails to meet strict legal requirements, such as being made in genuine contemplation of imminent death, being conditional on death, and involving sufficient transfer of control over the asset.
It may also be invalidated due to lack of capacity, undue influence, or weak or inconsistent evidence, as courts scrutinise these gifts closely since they bypass formal will requirements.
How to challenge a lifetime gift
The approach to disputing a lifetime gift will depend on the particular grounds relied upon and the circumstances of the case. The steps typically involved include:
- Gathering evidence, including financial records, medical documentation, and witness accounts
- Corresponding formally with the recipient to set out your concerns and invite a response
- Exploring alternative dispute resolution, including mediation, where appropriate
- Issuing court proceedings where informal resolution is not possible or suitable
Protecting vulnerable family members
If you are concerned that a relative is at risk of financial exploitation, it may be possible to take steps before a gift is made rather than seeking to recover assets afterwards. Practical measures include:
- Seeking a Lasting Power of Attorney to formalise appropriate oversight of their financial affairs
- Contacting the Office of the Public Guardian if you believe an existing Power of Attorney is being misused
- Obtaining specialist legal advice about the options open to you at the earliest opportunity
How Longmores can help
We provide specialist advice on all aspects of lifetime gift disputes, working with you to assess the strength of your position, gather the evidence required, and pursue a resolution that reflects what your loved one would genuinely have wanted.
Whether you need guidance on disputing a specific gift, recovering property that has already been transferred, assistance with inheritance disputes or protecting a vulnerable relative from exploitation, our team will support you at every stage.
Lifetime gift disputes FAQs
Can a lifetime gift be recovered after the donor has died?
Yes. A gift can be set aside after the donor’s death where it can be shown that it was made under undue influence, as a result of fraud, or at a time when the donor lacked the requisite mental capacity.
What evidence is needed to prove undue influence over a gift?
Relevant evidence may include medical records from the period surrounding the gift, correspondence between the parties, bank statements, witness accounts from family members or professionals, and attendance notes from any solicitors involved in the transaction.
How long do I have to challenge a lifetime gift?
The standard limitation period is six years from the date the gift was made. However, where the gift involved a transfer of land, a 12-year period may apply.
Can I challenge a gift made by someone with dementia?
Yes, though the outcome will depend on an assessment of the donor’s capacity at the specific time the gift was made. A diagnosis of dementia is a significant factor that the court will examine carefully.
What is the difference between undue influence and persuasion?
Persuasion, even strong persuasion, is not unlawful. It is perfectly legitimate to encourage someone to make a gift or to explain why a transfer might be appropriate. Undue influence involves pressure that overpowers the donor’s own judgment so that the gift no longer reflects their genuine wishes.
Who pays the legal costs in gift dispute cases?
Typically, the unsuccessful party pays the winning party’s costs, though the court retains discretion. In some estate-related disputes, costs may be met from the estate itself.
Speak to our lifetime gift dispute solicitors
To discuss your with a solicitor who truly understands your matter, please get in touch with our team today.
