Margaret Kellerman-Thornton was removed as executor of her late father’s estate after improperly charging personal expenses to the estate including multiple business class return airfares from London for herself and her husband plus over a month of hotel accommodation and restaurant meals in Taupo. Two lawyers from Wellington law firm Greg Kelly Law were appointed as replacement with power to recover all inappropriate payments.
John Kellerman lived in Taupo. He died in 2018. His will appointed daughter Margaret as executor with Margaret and her two brothers to share equally the balance of his estate. Margaret lived in London, working as an executive assistant. She now describes herself as a ‘practitioner’ helping people improve lifestyle choices.
The High Court was told brother Brendan had been estranged from his father for over twenty years. He did not get on with sister Margaret either. There had been bad blood since she sued to get a greater share of their mother’s estate. After their father’s death, Brendan sued his sister. She was claiming unreasonable expenses for handling the estate and was not properly detailing expenses incurred, he said.
Charging four business class return airfares from London was unreasonable, Justice Cooke ruled. Her father knew she lived overseas when appointing her executor. Two return air flights charged at ordinary rates could be justified at most, he said. There was no legal justification in claiming three business class return airfares for her husband, Justice Cooke said. Margaret said he was needed to help clear her father’s Taupo properties ready for sale. This job could have been done by local contractors at less cost, Justice Cooke said. He was also critical of the way cost of her husband’s air fares was buried in estate records; there was no itemised disclosure, his air fares were hidden under ‘property clearance.’ Further, there was no legal justification for charging 44 days accommodation at the Hilton Hotel Lake Taupo for both herself and her husband plus over one month of restaurant meals. Cheaper accommodation was available, Justice Cooke said.
The High Court was told estate expenses currently total about $179,000, of which some $67,000 relates to airfares, food and accommodation. Estate assets total $561,000.
Justice Cooke instructed Greg Kelly Law make inquiries about John Kellerman’s sale of a Taupo property in Heuheu Street to Margaret in the months prior to his death. It was not clear what happened to sale proceeds.
Kellerman v. Kellerman-Thornton – High Court (4.09.20)
20.150