Mental incapacity

In 1997 the deceased transferred the ownership of the freehold property issue to the first defendant (and claimant) but continued to live there with the defendant.

In 2002 the first defendant passed the property into the joint names of himself and his wife the second defendant as trustees of a trust. The deceased died intestate in 2005.

The claimant claimed that the 1997 transfer was invalid saying that the deceased had lacked capacity at the time of making it.

The judge said it was established that the extent of understanding required in respect of any instrument was relative to the particular transaction that it was to effect. In the case of a gift the degree required varied with the circumstances of the transaction.

In the instant case the deceased would have had to be capable of understanding that he had given...