Daughter-in-law's admission over disputed property funds

'She didn't need to say it, we knew it was a gift': Emotional admission in family house feud.

Gary and Kym Young are being sued by Gary's mother, Pauline Ann Buchan, for damages after alleged plans for the trio to live together fell apart. Picture: Contributed

A WIFE who accepted hundreds of thousands of dollars from her mother-in-law to purchase a Coast home and property with her husband swears the money was a "gift", but admitted none of the parties ever specifically used that word.

UK woman Pauline Buchan is suing Mrs Young and her only son, Gary Young, over her claim to a Kiels Mountain property they purchased for $510,000 towards which Ms Buchan transferred about two-thirds of the funds to the couple for purchase.

Ms Buchan claimed her ability and willingness to co-habit with the Youngs was the basis of her forwarding the monies, but was "shocked" on her first inspection of the property after arriving in Australia.

The plaintiff claims the couple suggested Ms Buchan fund and build a separate dwelling on the land while the couple lived in the house, which they also used her contributed funds to renovate.

Mrs Young told the Maroochydore Magistrates Court on Friday the money supplemented the couple's contribution and the mortgage and that Ms Buchan bought into the land, not the house.

Mrs Young became tearful during the plaintiff's line of questioning over the nature of three transfers which totalled Mrs Buchan's contribution.

Ms Buchan's barrister said it was not contested that Ms Buchan "gave" the couple the money.

"She didn't say she was gifting it, ever," he said.

To which Mrs Young replied, "She didn't need to, we knew it was a gift."

"I'm not talking about whether she 'needed' to, the question is, she never said that she was gifting you the money, did she?" he asked.

Mrs Young said, "She never used that specific word, we thanked her like it was a gift, she knew it was a gift, we did not need the money."

The court heard after the sale, almost $50,000 remained in the couple's account.

Bank statements show Mrs Young transferred $10,000 from this into her savings account which she told the court was to accrue interest.

When questioned whether the money could have been used towards Ms Buchan building a property for herself to live in, Mrs Young said the money was intended for renovations she did not believe it would be enough for the two-bedroom annex dwelling Ms Buchan wanted.