If I signed a paper stating money was given as a gift, am I obligated to pay it back?

Full question:

If I sign legal papers saying money was given to me as a gift, am I legally responsible to pay it back?

• Category: Gifts
• Date: 04/07/2025
• State: Wyoming

Answer:

The answer will depend on the circumstances involved, such as the delivery and acceptance of the gift and whether there were any conditions attached to making the gift. Typically, when a gift is delivered by the donor (gift giver) and accepted by the donee (receiver of the gift), the donor has given up rights of ownership and the donee is the new owner. However, a gift may be made conditionally, so that if the conditions aren't met, the gift may be taken away from the donee.

Gifts are not enforceable in the same manner that contracts are because they aren't supported by consideration, meaning that they are given without an exchange of something in return. Courts disfavor enforcing a promise to make a gift, and typically require the donee to prove detrimental reliance on the gift in order to enforce the promise. For example, if a person signs a pledge from to donate money to a charity and the charity signs a contract with penalties for cancellation to build a hospital wing based on this promised gift, the gift may be enforced.

In order to prove a gift was made, there needs to be a completed delivery by the donor and acceptance by the donee. Courts have found that the delivery of a gift in the form of a check isn't complete until the check is paid. The donor has a legal right to revoke the gift before the check is presented to the bank for payment, such as by issuing a stop payment order. It will be a matter for the court to determine, based on all the facts and circumstances involved, whether the donor intended to revoke the gift.