I say accept the gift and put it in J's account. Don't let yourself walk into any trap... Save the email put it in a safe place. I know it's hard to accept something from this woman giving the background but there are no conditions with her forgiveness of the loan. Take it hold on to it for J and let her know what your intentions are for the money.
I hope your able to come to a conclusion your comfortable with.
Hugs,
Jewel