Legal Question in Real Estate Law in California

My grandfather gave my wife and I a cash gift for a down payment. A year later, my grandmother states that she was never informed of this and wants half of the money back. We have not yet purchased a house. She also stated that she spoke with a lawyer and is ready to sue for the whole amount if we don't give half of it back.

We still have the money available. Both grandparents are irrational people, there is no way to speak with either party logically either at this point. She also signed and filed a gift tax form for her taxes although I have reason to believe that she didn't know what it was since she is now claiming that she never knew about the gift [a year later].

Does she have a case?


Asked on 9/06/09, 7:25 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Yes.

Family Code section 1100(b) says "A spouse may not make a gift of community personal property.....without the written consent of the other spouse. This.....does not apply to gifts mutually given by both spouses to third parties and gifts given by one spouse to the other spouse."

Also, an unauthorized gift may be recovered from the donee. Dargie v. Patterson (1917) 176 Cal. 714.

My suggestion would be to try to get a written settlement whereby both of them agree to accept X amount back (1/2 ?) in exchange for a release with respect to the rest. Before giving any of it back, however, try to determine whether the money was indeed community property. Possibly it wasn't; grandfather might have some separate property even after years of marriage.

What a mess!

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Answered on 9/07/09, 2:33 am


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