Megan and Joseph are an engaged couple seeking to purchase a home in Pennsylvania to live in together as a married couple. Joseph withdraws $52,000 from his personal savings account and gifts the money to Megan. As part of the gift, Joseph signs a letter attesting that he intended to gift the money to his fiancé, Megan, and he was not loaning her the money. Furthermore, Joseph’s letter stated that he intended the gifted funds to be applied to the purchase of their marital home and that he did not expect to be repaid in any way for the funds he gifted Megan. Megan uses these funds as a down payment to obtain a mortgage (in her name only) to secure the purchase of the new home. Unfortunately, Megan and Joseph’s engagement falls apart and the two never get married or move into the home. Why might a Pennsylvania court still require Megan to repay the gifted funds to Joseph even though his letter expressly stated that he was gifting her the money and he did not expect to be repaid?
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