Legal Question in Civil Litigation in Indiana

My mother passed away 6 months ago. My siblings and I (there are 4 of us including myself) could only come up with a third of the cost of the funeral. My nephew (my brother's son) asked myself and one of my sisters to step outside with him the night before the day of the funeral. He told us not to worry anymore as he had had his wife call the funeral home and make arrangements for them to pay the remaining costs the following day, the day of the funeral. He said that he had applied for some type of loan and that he would know if it went through the next day, but for the time being, he was very confident that it would go through and that the rest of the costs of the funeral would be taken care of. I told him, "I really appreciate it. I will try to pay you back whenever I get some money." He replied, "Oh you don't need to do that. Your mom did enough for me in my lifetime that this is the least that I could do." So I told him again, "Well for being so generous I will try my best to get you whatever money I can whenever I have it." He told me only if I wanted to. The whole time my sister was there with us telling him the same thing, that she would try to pay him back when she had the money, all for him being so generous. Six months down the line, my sister and I (only the two of us, not my other two siblings) received papers stating that my nephew is now suing us for repayment of the loan. He said that we broke a verbal agreement to pay it back. Would his claim hold up in court? I did say that I would pay him whatever I could, whenever I could, but nothing was ever mentioned besides that. Also, he had applied and had been accepted for the loan before he ever mentioned it to my sister and I. Please help!

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