The High Court has set aside bank transfers worth more than €143,000 made by a vulnerable Mayo widow into joint accounts with her late husband’s nephew just days after her husband’s funeral.
Monica Joyce transferred IR£112,890.86, equivalent to €143,341.82, from Bank of Ireland and AIB accounts in Claremorris into joint accounts with Dermot Joyce on 21 January 1998. The money had been held jointly with her husband Jack Joyce, who died a week earlier.
Mr Joyce told the court that his uncle had repeatedly said he wanted him to receive the money and that Monica understood and agreed with the transfers. He denied taking advantage of her and said the transactions reflected Jack’s wishes.
Mr Justice Gilligan found, however, that Monica was particularly vulnerable. Evidence showed that her memory and mental health had deteriorated over several years. Her GP described her as frail, depressed and severely anxious, with poor concentration and memory. Shortly after Jack’s death she required round-the-clock care and began attending a respite centre for people with Alzheimer’s disease.
The judge held that Monica became entitled to the money after her husband’s death. Although Jack may have told others that he wanted his nephew to benefit, he had never transferred the funds himself, while his will left his estate to Monica absolutely.
The court found that the relationship between Monica and Dermot Joyce, combined with her condition and the substantial benefit he received, created a presumption of undue influence. That meant Mr Joyce had to show the transfer was the product of Monica’s free and independent decision.
He failed to do so. The judge found that bank manager Seán Mellett’s involvement did not amount to sufficient independent advice and concluded that Monica probably did not fully understand the transaction.
The transfers were also set aside as improvident because Monica surrendered the great majority of her liquid assets for no immediate benefit while unable to adequately protect her own interests.