Drakeford v Cotton & Anor

Drakeford v Cotton & Anor

The court found that Mrs Cotton’s statements in June 2008 expressed a settled intention that, on her death, the monies in the joint accounts would pass to Mrs Stain both legally and beneficially, and that this intention was sufficient to rebut the presumption of a resulting trust. The arrangement was not a testamentary disposition but a valid change in beneficial ownership, so the monies did not form part of Mrs Cotton’s estate. The court also determined the proper accounting for trust property income and expenses, and accepted the Defendants’ evidence as to the extent of the jewellery.

Parties
Claimant: Lynn Drakeford; First Defendant: Russell Cotton; Second Defendant: Michelle Stain
Jurisdiction
England and Wales
Judgment Date
25 May 2012
Procedural Posture
Civil / Judgment After Trial
Outcome
Declarations granted in accordance with the judgment; no order for accounts or inquiries; directions for sale of jewellery if not agreed.
Legal Topics
Joint Bank Accounts, Resulting Trusts, Lifetime Gifts, Survivorship, Testamentary Dispositions, Trustee Expenses, Estate Administration
Trusts and Estates Property Law Joint Bank Accounts Resulting Trusts Lifetime Gifts Survivorship Testamentary Dispositions Trustee Expenses +1 more

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Parties

Lynn Drakeford

Claimant

Russell Cotton

First Defendant

Michelle Stain

Second Defendant

Procedural Posture

Civil / Judgment After Trial

Legal Issues

  1. 1 Whether monies in joint building society accounts formed part of Mrs Cotton’s estate or passed to Mrs Stain by survivorship
  2. 2 Whether Mrs Cotton made an immediate lifetime gift of the monies to Mrs Stain
  3. 3 Proper accounting for trust property income and expenses

Ratio Decidendi

The court found that Mrs Cotton’s statements in June 2008 expressed a settled intention that, on her death, the monies in the joint accounts would pass to Mrs Stain both legally and beneficially, and that this intention was sufficient to rebut the presumption of a resulting trust. The arrangement was not a testamentary disposition but a valid change in beneficial ownership, so the monies did not form part of Mrs Cotton’s estate. The court also determined the proper accounting for trust property income and expenses, and accepted the Defendants’ evidence as to the extent of the jewellery.

Court Disposition

Declarations granted in accordance with the judgment; no order for accounts or inquiries; directions for sale of jewellery if not agreed.

Orders

  • Declaration that monies in the joint building society accounts passed to Mrs Stain by survivorship and do not form part of Mrs Cotton’s estate
  • Declaration as to net income from trust property after deduction of proper expenses, with a modest allowance for petrol (£100)