This is an interesting estate dispute case involving life time gifts. The facts are as follows.
A mother had transferred money
to her daughter and son-in-law to enable them to buy a property. However, the mother’s Will left gifts to her two sons
and they, as Claimants, challenged the gifts stating that undue influence caused their mother to make
those transfers.
Whilst the court found no
evidence that the daughter had poisoned her mother’s affections or that the
mother had been coerced by her daughter to the extent that there was actual
undue influence, it found that the size and
extent of the transfers required an
explanation, particularly when coupled with the fact that the transactions took
place when the daughter was in a position of trust and confidence in respect of
her mother’s financial affairs.
As a result, the burden of proof shifted to the
daughter to rebut the presumption of undue influence.
In reaching its decision, the court noted that no independent
advice was given at the time the transfers were made and there
was no explanation from the daughter as to why the mother’s name was not on the
title of the new property
The court
were therefore of the view that there was a real question over whether the
mother really understood the letters that were sent out with her signature and
the impact of the transfers. It was also
not clear whether the mother intended by her actions to deprive her sons of the
legacies given to them by her Will.
The court was unwilling
to give the daughter the benefit of the doubt and made a finding of
presumed undue influence, which had the effect of setting aside the gifts.
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