In 2000, my husband and his father entered into an informal situation regarding the purchase of an RV. My father-in-law paid for the RV, but all paperwork was in my husband's name (purchase agreement, title to RV, etc.) There was never any written agreement regarding paying back the loan or any other such terms. Payment arrangements were very informal with the payment amounts and dates of payments varying from month to month. These informal arrangements were satisfactory to both parties. Approximately 2 years later and with half of the "loan" paid off, my husband's labor union went on strike; this strike lasted for close to seven months. During this time of financial strain, my husband sat down with his dad to discuss the situation regarding the continued payments on the RV. During this discussion, my father-in-law orally forgave the debt by telling my husband "not to worry about making any more payments", that the RV was a gift. Again, nothing was ever put into writing. Also, nothing else was ever said about the RV.
Now, sadly, my father-in-law passed away in July of 2006. At the time of his death, there was a revocable living trust in place that established his present wife as the trustee of his estate.(This wife is not my husband's mother)Two weeks ago, my husband and I received a letter from the wife's lawyer requesting payment for the balance due on the RV. My question is: Since there was never any written loan agreement and since the debt was forgiven orally by my late father-in-law, does the wife have any legal claim to the balance "still owing" on the RV or to the RV itself?