What to do if I was given momey as a gift from my parents but now they want to call it a loan?

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What to do if I was given momey as a gift from my parents but now they want to call it a loan?

About 3 years ago, my parents took $8,000 out of their checking account and paid off my credit card; they did not tell me until after it was done. Every once in a while, they threaten to sue me when they get angry. I don’t think they have a leg to stand on because there was no legal agreement, note, or anything signed by me that stated this was a loan that needed to be repaid. I was going through a difficult time and they felt the need to help me. I offered to pay them money but they always rejected my offer. Can they sue me?

Asked on April 10, 2012 under Bankruptcy Law, Maryland

Answers:

Victor Varga

Answered 11 years ago | Contributor

Anyone can sue anyone for anything, but what must be determined is whether it would be considered a gift or not.  To be a gift, there must be the intent to make it a gift (instead of a loan), the delivery of the gift, and the acceptance of the gift.  Besides the loan argument, the only other argument they may have is that you were unjustly enriched by them paying it off, but as you say they did so without your knowledge, a judge would likely consider it a gift. 

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Can they sue you?  Well, this is America and they could theoretically do so.  Will they sue you?  I doubt it.  Parents tend to pull things like this ou of their hats when they are angry at their children.  This is one of those ways that they feel they have some form of control over the situation when in fact you are an adult and they really have no control.  I do not think that the courts wold view this as a loan and rather deem it to be a gift.  Maybe, though, you should try and speak with them when they are calm about their actions and how they make you feel.  Good luck.


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