Judge approves £6m ‘gift’ for son of woman with dementia

THE son of a mentally ill mother has been given the green light from a judge to “gift” himself £6 million from her fortune for tax reasons.

Judge Carolyn Hilder was told that the 72-year-old woman suffered from dementia and needed full-time care. She had appointed her son as her only attorney eight years ago.

The man, his mother’s sole surviving child, asked the court to allow him to give himself a £6million “gift”, saying that such a move would reduce inheritance tax liabilities.

His mother’s fortune stood at

£18.6 million.

She was a widow who had married for a fourth time to a businessman while in her fifties. The court heard that he had “created” her wealth. He died eight years ago and left his entire estate to her.

The hearing took place at the Court of Protection, where issues relating to people who lack the mental capacity to take decisions are considered. Although the evidence was heard earlier this year, the ruling has only just been made public.

The judge, who is based in London, said the woman could not be identified and suggested some might say the man’s application was “self-serving”.

But she said that she was satisfied that the application had “not been improperly brought” and that the woman’s long-standing financial adviser was “fully in support”.

The woman had been separately represented by staff from the office of the Official Solicitor, who help mentally ill people caught up in litigation. They had also given their backing to the plan.

The woman had made a will seven years ago under which her son would inherit the vast majority of her fortune. The judge also gave the man permission to make “gifts” from his mother’s funds to various charities.

In total, more than £7million of the woman’s money would be given in gifts including to charities – a move that could cut inheritance tax liabilities by more than £3million.