I gifted a niece of my deceased partner $750,000. She wasn’t in the will, but I knew he wanted me to do this. She is now suing me because she says it was a part payment for a verbal contract for her helping me with probate. I couldn’t pay her as much as I intended as I had to sell shares and have had to pay $246,000 in tax. Should she now pay tax on this, as it is now not a gift?
Hi @Earthsedge
It’s a weird claim to make and one she will need to support with clear evidence.
As you note, it may be a point that she has not declared the amount as income as she did not actually consider herself to be providing a service. The other related points are where is her ABN and what about GST.
I’m sure your KC will have this covered if necessary
Normally the relative would just challenge the will.
Toby
HI @Earthsedge
Sounds very nasty and I strongly recommend you speak with a legal professional.
A fee over $750,000 for just helping with probate sounds extremely excessive.
Were you the executor named in the will?
IF the payment was a part payment for a service then YES it would be taxable for your niece.
Toby
Thank you Toby. Yes, i have a very good legal team, including a KC. My thoughts are she hasn’t declared this at all. She is claiming the money was a contract to help me with probate, but that only came out after she started legal action. That is a lie. The money was a gift.
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