Legal Question in Wills and Trusts in North Carolina

If this refers to the earlier question about the sale of land, the fact that land was sold is not relevant. If you are saying that a man gave a gift to a woman because she had taken care of him for years, that was the man's choice. As long as there was no fraud involved and he was of sound mind, it was ok. The man could gift up to $13,000 per year free of gift tax. Gift taxes would not have to be paid, but they would count towards his $1 million lifetime exclusion (I am not a tax attorney! This would be an issue for the man's estate anyway).

Was there any writing evidencing the gift? How was it paid? A check? Cash? How much?

You say that some person wrote a letter to your friend. I would answer and I would spend the money and have a lawyer draft response and explain that this was a gift and that no money needs returned.

Can the personal representative sue? Of course. As I said, anyone can be sued for anything. Whether they will prevail or not is another question. That is why I would have a lawyer draft a response. There is no legal requirement but responses can serve many purposes: (1) to make the other party think twice about filing a lawsuit, especially if there is no evidence to support the fact that this was a gift; and (2) to get a feel for what kind of evidence the other side can mount. They may respond and tell you - its like playing poker where you hope your opponent shows you his cards.

In no case would I just refund the money just because someone asked. The person who asked has to be the personal representative of the estae.

I cannot really discuss the specifics of your friend's sitatuation with you. Your friend needs to see an attorney in the area where a lawsuit is likely to be brought or an estate would be/is pending.