View source for Pitt v Holt (2011) EWCA Civ 197

''As receiver under the MHA 1983 (old equivalent to deputy under the MCA 2005) for her husband, Mrs Pitt set up a settlement trust which overlooked the impact of inheritance tax (the linked case of Futter case did not involve mental capacity so is not summarised here). (1) The court considered the Hastings-Bass rule, including the distinction that an act in the exercise of a dispositive discretion is (a) void if done by trustees outside the scope of the relevant power, but may be (b) voidable if done within the terms of their power but in breach of a fiduciary duty (the same principles apply to others in a fiduciary position, including receivers). (2) Mrs Pitt's acts were within the terms of the power conferred by the Court of Protection, so were not void. They were not voidable either, as she had taken professional advice (albeit inadequate advice) from a proper source as to the advantages and disadvantages of the various courses open to her. (3) For a voluntary disposition to be set aside on the basis of mistake: (a) the donor must be mistaken, at the time of the disposition, as to its legal effect or as to an existing fact which is basic to the transaction; and (b) the mistake must be of sufficient gravity to satisfy the Ogilvie v Littleboy test (which provides protection to the recipient against too ready an ability of the donor to seek to recall his gift). (4) Mrs Pitt was under a mistake (she believed that the transaction would not have any tax disadvantages) which met the Ogilvie v Littleboy test, but unforeseen fiscal liabilities are a consequence, not a legal 'effect', so the disposition would not be set aside.''

==Related judgments==
[[Pitt v Holt (2013) UKSC 26, (2013) MHLO 46]]
*[[Pitt v Holt (2011) EWCA Civ 197]]
**[[Pitt v Holt (2010) EWHC 45 (Ch)]]

==ICLR==
{{ICLR|Pitt v Holt (2011) EWCA Civ 197}}

==Citations==
[2011] EWCA Civ 197, [2011] WLR (D) 84, [2011] All ER (D) 101 (Mar)

==External link==
{{#bailii:(2011) EWCA Civ 197}}

[[Category:Other capacity cases]]
[[Category:Detailed summary]]
[[Category:Transcript]]
[[Category:2011 cases]]