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Repaying a gift

Discussion in 'Mortgages & Financing' started by mdinner, Aug 18, 2018.

  1. mdinner

    mdinner Law Topic Starter New Member

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    Jurisdiction:
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    I signed a gift letter for my son who was buying a house. There were no repayment requirements. I know I legally declared this money was a gift and it required no repayment but what if he wants to pay it back? Is there a time limit where beyond which he could legally gift me money back. Also, my son was the only name on his mortgage. His wife’s name is not on the mortgage nor did they show any income from his wife on the mortgage application. Also, my wife’s name does not appear on the gift letter. The gift was only from me and given only to my son. Is it ok for my son’s wife to gift the money back to me? Could my son or his wife gift the money back to my wife? I do not want to commit mortgage fraud and realize the line may be very fine. However, I would think that after giving a child a monetary gift it would not preclude that same child from ever giving a monetary gift to the parent. Also, if the gift is solely between father and son I would think that wouldn’t preclude gifts between their wives. Thank you for your time. I am looking forward to hearing the legal answers to my questions.
     
  2. army judge

    army judge Super Moderator

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    He need not repay a GIFT.

    He could, HOWEVER, gift you the amount you GIFTED to him.

    Anyone can chose to make you a GIFT, even your child's spouse!


    Easy peasy.....
     
  3. mdinner

    mdinner Law Topic Starter New Member

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    As I understand it, while anyone can give a gift, the mortgage company requested a gift letter to be assured there was no obligation to pay that money back. As a lender they want to be assured my son as a borrower did not have additional debt. Any additional debt my son might have would decrease the amount the mortgage company would be willing to lend him. If my son turned around and gifted the amount I gifted to him back to me, that could be interpreted as the money I gifted him was really a loan and the statements made in the gift letter that no repayment was required or expected were false. It’s my understanding that could be considered “mortgage fraud”. I found the following at another legal online site:

    If the funds provided to the children are actually a loan, and the parents sign a gift letter, knowing that they expect to be repaid, regardless of whether it will also be registering as a mortgage on title, this is not acceptable. Signing a gift letter under these circumstances is mortgage fraud.
     
  4. army judge

    army judge Super Moderator

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    I know what a gift is, as well as what MIGHT be deemed "fraud".

    I also know what asking about this matter could be perceived as, mate.

    Therefore, I suggest to you that if you did GIFT the money, it might be best NOT to publicly inquire about the matter.
     
  5. adjusterjack

    adjusterjack Super Moderator

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    How long ago did he take out the mortgage with the gift letter?

    How much money did you gift him?

    Where will he get the money for the gift he wants to give you?

    Will he give it too you all at once or in payments?

    Is it his idea or your idea?

    Will giving you the money stretch his finances to the breaking point? It's not the gift he has to worry about as long as he doesn't default on the mortgage. It's what happens when he defaults and the lender finds out he gave the money back. That's when the stuff could hit the fan.
     
  6. mdinner

    mdinner Law Topic Starter New Member

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    Thanks for the info. Was just wondering what is allowed and what isn’t.
     
  7. zddoodah

    zddoodah Well-Known Member

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    I don't really understand the form of this question. If he wants to give the money back and has the means to do so, then I imagine he'll do exactly that.

    We have no way of knowing what they're able to do.

    True. However....

    I can call my car a horse, but that doesn't make it a horse. I can call my house a mansion, but that doesn't make it so. I can call my s**t a rose, but that doesn't make it so. You can call a loan a gift all you want, but it doesn't make it so.
     
  8. txls

    txls Well-Known Member

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    Your son can always put a $100 bill from time to time in a birthday card, Mother's Day card etc and nobody cares.
     
    army judge likes this.
  9. mdinner

    mdinner Law Topic Starter New Member

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    Thanks for everyone’s comments. Didn’t mean to over complicate this question. Just wanted to know if a gift was given to a child under the circumstances I mentioned, was there any legal reason the money could not be gifted back in the future. I did not want my son or myself to do anything that was not legal.

    I think what army judge said in her post is probably correct:

    He need not repay a GIFT. He could, HOWEVER, gift you the amount you GIFTED to him.

    As I understand it, the gift letter gave up my right to have the money repaid should my son not wish to do so. However, the gift letter did not preclude his ability to repay the money should that be his choice.

    Thanks again for everone’s Input and advice.
     
  10. Highwayman

    Highwayman Well-Known Member

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    HIS.
     
  11. mdinner

    mdinner Law Topic Starter New Member

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    I stand corrected...HIS
     

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