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Is it a gift? Don’t bet your house on it.

The case of Leonard Taylor has been widely reported in the national press and it concerns a “gift” of £61,000 paid to him by cheque from his partner, Doris Luker, just a week before she died. Two charities, the British Heart Foundation and the Cancer Research Campaign, who between them stood to receive the residue of Ms Luker’s Estate, challenged the “gift” in the High Court, successfully arguing that the payment was in fact a loan. Mr Taylor appealed but now the Court of Appeal has affirmed the High Court’s decision and Mr Taylor has been ordered to pay the charities’ legal costs and openly admits he will have to sell his house to pay them. This case has raised several complex issues regarding lifetime gifts, and the reality is that had Ms Luker taken some simple steps in advance the costly dispute could have been avoided. Lifetime gifts remains a practical and legal option for financial planning but this case underlines the importance of obtaining professional legal advice. The case also highlights the importance to executors of scrutinising every significant lifetime gift as there may well be reason to reclaim such “gifts” and increase the value of the Estate just as the charities found to their favour. Please feel free to contact me for further advice.

http://www.telegraph.co.uk/news/uknews/law-and-order/8867462/Toy-boy-72-faces-losing-home-after-court-battle.html

Daniel Winter (profile) Tuesday 15th November 2011
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