15 August 2016

Undue Influence: re Sheward

The last will of longstanding Akaroa identity Frank Sheward was invalidated because of the undue influence of caregiver Pru Downes in having his final will rewritten to benefit her family trust.  Her family trust still stands to receive some $500,000 under an earlier will now admitted to probate.
Frank Sheward died in 2013 in his late eighties owning a house and 6.5 acres on Rue Balguerie at Akaroa.  He was a widower for the last ten years of his life and had no children.  On his death he left two wills dated four days apart, signed some five months before he died.  The first left Rue Balguerie to his neighbours: Alistair and Neroli Davidson.  Mr Davidson, formerly officer in charge of the Akaroa police station, had known Mr Sheward for twenty years.   The latter will saw the property being divided between the Davidsons and the Downes family trust, a trust established for the benefit of Pru Downes and her family.  Ms Downes had been Mr Sheward’s caregiver for the last three years of his life.
The High Court was told Ms Downes was initially contracted through Access Home Health in late 2009 to assist Mr Sheward.  Later the Access link was severed and Ms Downes came to her own private arrangement with him for personal care and domestic assistance.  The extent of this arrangement became a matter of concern in the local community with suspicions she was taking personal advantage of a lonely vulnerable old man.  There was evidence of gifts of a $50,000 Subaru Forrester, a ride-on lawnmower and payments by cheque for Ms Downes medical and dental expenses, payment of school fees, a substantial Christmas bonus for Ms Downes together with air fares for her children to visit in Akaroa and a gift for a granddaughter.  His Farmlands Co-op account was used to purchase petrol and clothing that Mr Sheward was unlikely to want or to need.  There was talk of Mr Sheward becoming godfather to her children.  Her children were then in their fifties.      
The High Court was told of growing suspicion and animosity between Ms Downes and the Davidson neighbours.  Asked at one point by Mr Sheward to handle his tax accounts, Mrs Davidson became uneasy about the manner in which Ms Downes appeared to be handling Mr Sheward’s financial affairs.  There was evidence Ms Downes actively intervened to keep the Davidsons away from Mr Sheward in his final days.
Following Mr Sheward’s death, the High Court was asked to rule on the validity of his final two wills: one signed on 14 April 2013, the second on 18 April 2013.
His 14 April will, drafted after several meetings with his lawyer, left Rue Balguerie to the Davidsons.  Ms Downes told the High Court the lawyer got it wrong.  Mr Sheward had been considering a subdivision of his 6.5 acre property for some time, with the Davidsons interested in buying some five acres.  Ms Downes, meanwhile, had raised with Mr Sheward the possibility of her daughter building a house at the back of the property and her daughter providing continuing care for Mr Sheward should she no longer be capable of doing so.  Ms Downes daughter lives in Palmerston North where she runs a landscaping business.
Evidence was given that the 14 April will was sent back to the lawyers within a day of signature, handwritten annotations on it in Mr Sheward’s writing indicating the Downes family trust was to share in the property.  Lawyers promptly returned a revised will with the words “draft” and “copy” stamped on the document for Mr Sheward to check.  The court was told Ms Downes immediately took Mr Sheward down to the local chemist where two staff were asked to witness his signing of this draft which then became the 18 April will.
Justice Dunningham ruled the 18 April will invalid.  She said the 18 April will was signed in unorthodox circumstances.  Mr Sheward had little knowledge of what he was signing.  There was evidence Mr Sherward had very limited reading and writing skills and was probably dyslexic.   The 18 April will was invalidated by Ms Downes undue influence, Justice Dunningham ruled.  Ms Downes had encouraged Mr Sheward’s high level of dependency and had encouraged Mr Sheward to regard her family as a surrogate family.
The 14 April will was admitted to probate as Mr Sheward’s final will.  Downes family trust is the residuary beneficiary.  Lawyers estimate the residue could amount to $500,000 or more.                 
Re Sheward – High Court (15.08.16)

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