Did You Mean To Share Your Wealth?

Summary

The most senior judges in England have decided that an elderly man who gave his friend access to his bank account to 'pay utilities' actually intended his friend to have the $190,000 remaining in the account on his death.

Facts

In October 2009 Francis Lennard (formerly a successful businessman and then in his 90s) executed a Will which gave his home in Nassau Bahamas, a legacy of $55,000 and one third of his residuary estate to his friend David Moree. Legacies together amounting to $150,000 were also given to the Bahamian Salvation Army and the Bahamas Humane Society. The other two thirds of residue were left to a Dorothy Jack and a Norman Whitlock. Francis' Will named David and a Mr Pinder as his executors.

In November 2009 Francis wanted his friend David added to his account at First Caribbean (International) Bank in the Bahamas. It appears that Francis' personal account was effectively converted into a joint account for Francis and David.

At that point, Francis and David signed the bank's standard account opening application form for opening a joint account, which included a declaration that they had read and understood the bank's standard terms. The standard terms incorporated into the application form included a joint ownership provision at clause 20, which read:

'JOINT TENANCY: Unless otherwise agreed in writing, all money which is now or may later be credited to the Account (including all interest) is our joint property with the right of survivorship. That means that if one of us dies, all money in the Account automatically becomes the property of other account holder(s). In order to make this legally effective, we each assign such money to the other account holder (or the others jointly if there is more than one other account holder).'

The evidence about what Francis intended or knew about the standard terms was sparse. However, a member of bank staff recorded on the account opening forms that the purpose of the joint account was to 'pay utilities'.

In January 2010 Francis revoked the legacies to charity in his will thereby increasing the size of his residuary estate.

On Francis's death in February 2010 the balance of the account was $190,000. David confirmed to his co-executor that the sums in the account formed part of Francis' estate and they both signed their executor's oaths for obtaining a grant of probate on that basis.

In March 2010 David added his wife to the joint account which, following Francis' death, was then...