it depends. it could either be construed as a gift or sale. Without a written agreement, it is hard to determine the nature of the transaction and would involve a legal interpretation that we are not allowed to comment on.
I can say though that this could be construed as a sale if the sister intended to pay her brother but without an agreement, this is a gray area at best and more likely may be considered a gift than a sale from an IRS perspective. My advice is that as a safe practice, to file 2 separate gift tax returns one for the transfer and one for the gift of cash. i say this because there is no clear IRS guidance on how to handle a situation of this type of transaction.
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