Gifts and financial abuse

Disputes over gifts and financial arrangements can arise at the most sensitive times.

Whether you need to claim or defend a deathbed gift, challenge a lifetime gift, or protect a loved one from financial abuse, our experienced lawyers are here to provide the support you need.

Deathbed gifts

A deathbed gift involves a gift made by the donor in anticipation of their impending death, often where they don’t have time to update their will. Such gifts are open to abuse and strict conditions must be followed in order for them to be effective.

Due to the nature in which deathbed gifts are made, they must meet a number of requirements to be valid. There are four conditions as follows:

The gift must be made in contemplation of imminent death. The beneficiary of the gift must prove this.
The gift must be made on the condition that the donor dies (ie if the donor recovers, the gift is revoked)
The donor must deliver or part with the gift. This could be by parting with something which controls the gift, eg a key.
The gift must be capable of being given away

If you’re concerned about a deathbed gift or need to challenge one, we can guide you through the process.

Lifetime gifts

A lifetime gift is any transfer of assets made during a person’s lifetime, rather than through their will. If made successfully, lifetime gifts assist the donor in benefitting those they want to and can be tax efficient.

Examples of a lifetime gift include:

Outright gifts
Assets sold at below market value
Solely owned assets transferred into joint ownership
Loans made on favourable terms

In some cases, such gifts are not made for the right reasons (for example, the donor may have lost capacity or may be subject to undue influence) and may be contrary to the wishes of the individual making it. If you believe that a lifetime gift has been wrongfully made, contact our team to find out how we can help.

Financial abuse

Where a person is vulnerable or has lost capacity, they can become more susceptible to targeted financial abuse. Where this occurs, it can have devastating impacts on the person’s loved ones and their estate.

Examples of this include:

Theft – either physically or through the transfer of funds
Exerting undue influence by forcing or coercing an individual into amending their will or creating a new one against their wishes
Convincing a person to execute or make changes to their Lasting Power of Attorney to take control of their money or property
Convincing someone to transfer the ownership of their property or fraudulently obtaining control of someone’s property
Attorneys, deputies or trustees charging unnecessary expenses or misappropriating funds they are in control of

If you believe a loved one has been or could potentially be a target of financial abuse, we're here to help.

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Meet our estate, trust and will disputes team

Our experienced team of lifetime gifts solicitors have successfully resolved disputes involving significant assets, family businesses, and complex tax issues. We provide clear, practical advice and robust representation in negotiations and court proceedings.

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Claims under the Inheritance Act 1975

Understand your rights under the Inheritance Act. Explore our guide for key steps and considerations.

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Disputes in the Court of Protection

Protect your loved one’s rights with expert guidance on capacity, deputyship, statutory wills and more.

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Frequently asked questions

What are the grounds for challenging a deathbed gift?

The grounds for challenge are as follows:

The donor lacked sufficient mental capacity at the time the gift was made
The donor made the gift due to undue influence or duress
The donor did not have a genuine belief that they were about to die
The formalities were not met (ie physical delivery of the gift)

If you believe that one of these grounds exists, you may be able to challenge the gift and should contact our team as soon as possible.

What does ‘contemplation of imminent death’ mean?

The donor must believe that, either due to injury, illness or another reason, that they are to die imminently. This doesn’t necessarily mean that the donor must be aware of their exact condition, they must just have a genuine belief that they are close to death.

Why should I challenge a lifetime gift?

You may be able to challenge a lifetime gift if:

The person making the gift did not have sufficient mental capacity
The gift was fraudulent
The person making the gift was pressured/coerced into making the gift by someone else
The gift was made by the person’s power of attorney on their behalf outside of the gifting rules and without approval from the Court of Protection
The gift was made on the basis of misleading or inaccurate advice

If you believe a lifetime gift has been wrongfully made, our team can help you recover assets and protect the estate.

Why are lifetime gifts made?

Lifetime gifts can be made for a number of reasons, including:

Reducing inheritance tax liability

Provided the person making the gift (donor) survives the gift by seven years, the gift will not be subject to inheritance tax. Furthermore, the donor can make the most of the relevant exemptions and allowances available to them. See our wills, estate and succession planning page for more information.

Future planning

Where shares are gifted, this can allow business owners to plan for future management of their business. For further information, go to our supporting business owners page.

Increased efficiency and control

By making a lifetime gift, this avoids it going through probate and means the recipient benefits instantly, allowing the donor to ensure that their estate is being distributed in accordance with their wishes. See more on our wills, estate and succession planning page.

Is there a time limit to claim against deathbed or lifetime gifts?

No there is not a strict time limit for challenging deathbed or lifetime gifts. However, it is better to act as soon as possible for the best chance of making a claim. Contact our team for an initial call and read more about our services and expertise on our estate, trust and will disputes page.

Can a lifetime gift be challenged while the donor is alive?

Yes, a lifetime gift can be challenged while the donor is alive. Doing so increases the likelihood of successfully gathering evidence and attaining a desirable outcome.

What are the warning signs of financial abuse?

Warning signs of financial abuse include:

Gifts that are unusually large and/or unexplained
Sudden or unexpected changes to the will or Lasting of Power Attorney which contradict the previous wishes or disinherit someone who benefitted under the previous will, particularly where the new beneficiary only recently came into the testator’s life
Frequent cash withdrawals
Restrictions placed on bank accounts or changes to detail
Someone becoming increasingly involved in the persons’ life, both quickly and without reason; particularly, where this results in the person becoming isolated from their family and friends

What should I do if I believe financial abuse has occurred?

If you suspect financial abuse, you should contact our team as soon as possible to see how they can help.

Furthermore, immediate reports should be made to the police and, where necessary, banks to allow them to conduct investigations. If the abuser occupies a position of trust as an attorney or deputy, reports should also be made to Social Services and the Office of the Public Guardian.

How can financial abuse be proven?

It can be difficult to prove financial abuse as, often, the abuser is in a legitimate position of trust (ie Lasting Power of Attorney). Where the victim is still alive, evidence can be gathered through bank statements and witness statements. However, if the victim has died, it can become more difficult to gather evidence.

Is financial abuse a criminal offence?

Financial abuse is not in itself a criminal offence but may give rise to other criminal offences such as fraud or coercive/controlling behaviour which do create criminal liability. In any case, it’s advisable to report any suspected financial abuse to the police.

What is fraudulent calumny?

Fraudulent calumny occurs where an individual makes knowingly false representations to the individual making the will about someone else. The result is that the individual making the representations obtains a greater entitlement under the will at the expense of the other person.