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My Brother has practically stolen money from my Dad

My brother, who is 19 decided a few months ago that he wanted to drop out of university and start his own business, my Dad being a business man himself was all for him doing this and lent him the money. I won’t say how much it was but it was a lot 5 figures and my Dad always said he didn’t have to give it back provided that all the money was invested.

He didn’t do this, in fact he decided to fly himself around on nights out with his ‘mates’ and has some how managed to spend of what would be to most people double a years income in 3 months! How we has done this is beyond me and quite frankly he is an immature idiot (so to speak) and has absolutely tore our family apart. He says he’s not paying it back and shouldn’t have to as it was agreed he didn’t have to but he didn’t spend it on his business, so I think he should.

Someone who knows about this area of law, can my Dad take him to court or not? He never signed a contract and just lent him the money out of the kindness of his heart and he’s just thrown it back in his face what can he do and will he ever get is money back, to be honest my brother hasn’t got any money to give him back.
Original post by Amy hull 123
My brother, who is 19 decided a few months ago that he wanted to drop out of university and start his own business, my Dad being a business man himself was all for him doing this and lent him the money. I won’t say how much it was but it was a lot 5 figures and my Dad always said he didn’t have to give it back provided that all the money was invested.

He didn’t do this, in fact he decided to fly himself around on nights out with his ‘mates’ and has some how managed to spend of what would be to most people double a years income in 3 months! How we has done this is beyond me and quite frankly he is an immature idiot (so to speak) and has absolutely tore our family apart. He says he’s not paying it back and shouldn’t have to as it was agreed he didn’t have to but he didn’t spend it on his business, so I think he should.

Someone who knows about this area of law, can my Dad take him to court or not? He never signed a contract and just lent him the money out of the kindness of his heart and he’s just thrown it back in his face what can he do and will he ever get is money back, to be honest my brother hasn’t got any money to give him back.

I think, without proof, your dad will just have to settle for totally cutting your brother off and removing him from the will. That's assuming you don't have a soft touch mother who is willing to forgive him anything.

One idea, however, does come to mind. I think gifts over a certain amount attract tax. So you could report him to HMRC, and maybe they will give him the hell he richly deserves.
Unfortunately not, your dad essentially gifted the money to him, therefore what he chose to do with the money was legally up to him. It's a sad situation and I can understand how this affecting your family, but it was foolish for your dad to lend such a large amount of money without any concrete plan or a contract.
Original post by ethancruise15
Unfortunately not, your dad essentially gifted the money to him, therefore what he chose to do with the money was legally up to him. It's a sad situation and I can understand how this affecting your family, but it was foolish for your dad to lend such a large amount of money without any concrete plan or a contract.

Am I right about the tax liability? At least that would provide some payback.
Original post by David Getling
I think, without proof, your dad will just have to settle for totally cutting your brother off and removing him from the will. That's assuming you don't have a soft touch mother who is willing to forgive him anything.

One idea, however, does come to mind. I think gifts over a certain amount attract tax. So you could report him to HMRC, and maybe they will give him the hell he richly deserves.

Thanks for quick reply, I’m not sure about the tax thing I’m sure my Dad will know something about that and will sort it. He just wants it back out of principle if anything. The problem with cutting him off is he will have nothing, my Dad has taken his car from him as it’s in his name which will at least get some of it back, but he has no job, he lives at home and has nowhere else to live except with friends which is where he is now. My mum isn’t soft and is totally disgusted with him but she won’t just kick him out and neither will my dad because he’ll essentially be homeless. Which, in my opinion is a good idea to get him out of the Dad will pay for everything mind set and will force him to grow up and face reality.
Original post by Amy hull 123
My brother, who is 19 decided a few months ago that he wanted to drop out of university and start his own business, my Dad being a business man himself was all for him doing this and lent him the money. I won’t say how much it was but it was a lot 5 figures and my Dad always said he didn’t have to give it back provided that all the money was invested.

He didn’t do this, in fact he decided to fly himself around on nights out with his ‘mates’ and has some how managed to spend of what would be to most people double a years income in 3 months! How we has done this is beyond me and quite frankly he is an immature idiot (so to speak) and has absolutely tore our family apart. He says he’s not paying it back and shouldn’t have to as it was agreed he didn’t have to but he didn’t spend it on his business, so I think he should.

Someone who knows about this area of law, can my Dad take him to court or not? He never signed a contract and just lent him the money out of the kindness of his heart and he’s just thrown it back in his face what can he do and will he ever get is money back, to be honest my brother hasn’t got any money to give him back.

Well this is a difficult situation as it appears it was a gift.

It sounds as tho there was an implied contract that this was a gift for strictly business operation, and if that had been put into writing then you probably could sue, but if its just implied/verbal agreement it would be hard to prove in court and is most likely gone.
Original post by Amy hull 123
Thanks for quick reply, I’m not sure about the tax thing I’m sure my Dad will know something about that and will sort it. He just wants it back out of principle if anything. The problem with cutting him off is he will have nothing, my Dad has taken his car from him as it’s in his name which will at least get some of it back, but he has no job, he lives at home and has nowhere else to live except with friends which is where he is now. My mum isn’t soft and is totally disgusted with him but she won’t just kick him out and neither will my dad because he’ll essentially be homeless. Which, in my opinion is a good idea to get him out of the Dad will pay for everything mind set and will force him to grow up and face reality.

Amy, I can see where you are coming from. Unfortunately few parents are prepared to put there kids on the street, even if they richly deserve it. But as you say he is with friends so he wouldn't be on the street. At the very least, if I were your dad I would make him work stacking shelves in Tesco (or similar) as a condition of staying at home.
Original post by David Getling
Amy, I can see where you are coming from. Unfortunately few parents are prepared to put there kids on the street, even if they richly deserve it. But as you say he is with friends so he wouldn't be on the street. At the very least, if I were your dad I would make him work stacking shelves in Tesco (or similar) as a condition of staying at home.

Id tack on rent and contribution to living costs, needs to learn the value of a £.
Does your dad have nothing in writing? maybe not a contract, but what about text messages or emails? bank statements?
If anything,Judge Rinder has taught me to always write everything down!

It is difficult because it could be seen as a gift, rather than a loan. However if your dad could convince a court this was meant to be an investment into a business (which turns out doesnt exist), might have a chance - then again , if it was an investment, what was there nothing in writing?
Reply 10
Original post by David Getling
Am I right about the tax liability? At least that would provide some payback.

No, it is likely a PET and would, if it fell into tax re death of father, within next seven years (presuming a part of his estate at that juncture transferred to non spouse and aggregated over IHT nil rate bands) likely induce a tax bill on father's estate.

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