02 February 2018

Estate: Loosely v. Powell

Jennifer Loosley was ordered to pay personally increased estate legal costs incurred as a result of her evasive behaviour in hiding terms of sister Allison’s will from fellow sister Barbara Powell.  Their sister’s 2014 will which excluded Barbara’s children as residuary beneficiaries to the benefit of Jennifer’s two children was set aside, allowing a further three beneficiaries to share a two million dollar estate.
Allison Slater died of breast cancer in May 2014 aged 64.  Widowed and childless, her valuable estate had been the subject of family discussion in the years prior to her death.  Views were expressed that it would be better to skip a generation and make any substantial bequests to nieces and nephews.  A will signed in 2011, the year she was diagnosed with cancer, left the residue of her estate to be divided equally between five beneficiaries: Jennifer’s two boys, Barbara’s twin children and an English nephew of Allison’s late husband.   A later will, signed in 2014 six days before she died, left Jennifer’s two sons as the major beneficiaries.  Barbara’s two children were to get fixed sums in cash: $50,000 each.  The English nephew, nothing.  But $100,000 to his mother.
The Court of Appeal was told the 2014 will named sister Jennifer and her husband as executors.  On Allison’s death they did not disclose details of the will to Barbara.  They were evasive when questioned about the content.  Only after probate was granted did Barbara find her children had been cut out.  Protracted court proceedings followed, overturning probate.  The Looselys, as executors, were ordered to pay twenty per cent of Barbara’s legal costs and were barred from recovering twenty per cent of their own legal costs from Allison’s estate.  The court was told this would be in excess of $22,000.  Failure to be upfront about Allison’s will led to extensive litigation that could otherwise have been avoided, the court ruled.
The Court of Appeal confirmed High Court findings that Allison lacked testamentary capacity when signing her 2014 will.  There was conflicting evidence about her state of mind in the weeks prior to signature.  The court said medical evidence indicated confusion and some delirium.  She was heavily medicated at the time.  While some witnesses saw someone who was lucid, Allison’s own diary notes showed a level of confusion.  Names were misspelt.  Calculations of potential bequests were described in pounds sterling (Allison had lived in England for much of her life) and did not make sense in the context of proposed changes to her will.  Nothing was said about bequests of her chattels.  The Court of Appeal ruled she did not have a clear understanding of changes made by her 2014 will.           
Loosley v. Powell – Court of Appeal (2.02.18)

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