What is a gift? 

As a deputy or attorney, a gift-giving is not just: 
Using the person’s money to buy something for someone else (including you) on a birthday or other ‘customary occasion’. 
Giving the person’s money or possessions to another person 

Gift-giving in includes: 

Donations to charities 
Paying someone’s school or university fees. 
Living rent free or at a ‘friends and family’ rate in a property belonging to the person. 
Selling the person’s home to someone at less than market value 
Creating a trust for someone from the person’s property 
Giving someone an interest-free loan from the person’s funds (the ‘lost’ interest counts as a gift) 

The most relevant issue is – is the gift of reasonable value? 

Did the person used to give gifts of this value when they had mental capacity? 
Would the gift affect the person’s ability to meet their living expenses, now and in the future? 
What is the person’s life expectancy – and will they have enough funds for the remainder of their life? 
Does the gift reflect what the person has said they want to leave to people in their will? 
Gifts must always be well within what the person can comfortably afford. ‘Affordable’ varies a lot from person to person. A £200 gift has a bigger impact on someone with £9,000 than someone with £90,000. 

The case of BEANEY [1978] 1 WLR 770 is used 

Facts: In this case, a mother who was suffering from senile dementia made a gift of her house, the only substantial asset of her estate, to one daughter, Valerie, who had stayed at home to look after her mother for many years; but this had the effect of virtually disinheriting the other two (married) children. 
Held: It was held that the gift was void because she was unable to understand the conflicting claims of her other daughters i.e. she didn’t have the mental capacity. REFERENCE - www.digestiblenotes.com 
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