InsightsInsight - Court of Protection - POSTED: September 14 2018
Son given authority to gift himself £6 million by Court of Protection
In a recent case, the Court of Protection has granted an attorney’s application to make a gift from his mother (P) of £7 million, some £6 million of that to himself.
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In PBC v JMA, 2018 EWCOP 19, the Court of Protection considered the application made by P’s son (PBC), that essentially his mother would have wished to have gifted him £6 million with the hope that this would reduce the possible inheritance tax bill were she to survive the gift for at least 3 years.
PBC was appointed as the sole attorney for his mother P under a property and affairs Lasting Power of Attorney. P suffered from early onset dementia and was incapacitated and unable to converse. P’s only family was a sole surviving child and one grandchild.
The Court heard evidence that P had in the past wished to make gifts within her means to PBC and by her will had evidenced her wish to benefit PBC and her grandson. It was also noted that by appointing PBC as her sole attorney, she indicated a significant degree of trust and faith in him and the decisions he was empowered to make.
The Court considered the effect of the gift in that approximately £3 million of inheritance tax could potentially be saved and that P would be left with ample funds of £10 million. The judge decided that taking all aspects into consideration she was satisfied the factors in favour of the gifts outweighed the factors against and the gifts were in the best interests of P.
This content is correct at time of publication
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