Contentious Probate Client

Background

Our client was a friend of an elderly lady (the Donor) to whom she provided informal care and assistance with household tasks and shopping.

The Donor had substantial cash savings amounting to a six-figure sum. The Donor wished added our client to her bank account, thereby becoming a joint bank account, and gifted to our client the use of the funds in account. All of the necessary formalities were carried out by the bank to effect this change.

Approach

The Donor was subsequently admitted to a residential care home and was diagnosed with vascular dementia. She died approximately 2 years after making the gift and changes to her bank account in favour of our client. Upon the death of the Donor. The substantial cash savings in the account passed to our client by survivorship.

Approximately 3 years later, the personal representatives of the Donor’s estate, being members of her wider family residing in various areas of the UK, commenced court proceedings against our client to recover the monies in the bank account, their case being that the Donor lacked mental capacity to make the gift and that she placed under undue influence by our client on the basis of a relationship akin to patient and carer. Fraud was also alluded to but never formally pleaded in a statement of case.

Outcome

The proceedings were defended by our client on the basis that a gift of the use of the cash was validly made between friends and the Donor had the capacity to do so.

A negotiated settlement was achieved at a lengthy mediation. This settlement averted the need for further litigation at considerable expense to all parties and the risk of financially ruinous consequences for our client had the claimant’s case succeeded at a trial.