Over a period of 28 years Ken Bolton not only failed to finalise his late father’s estate but lived in one of the properties rent free while raising a mortgage on the property for a bank loan he did not repay and transferred a second property into the name of a company he controlled instead of transferring ownership to his brother as agreed by all beneficiaries. Removed by the High Court as estate administrator, his behaviour was described as being at best negligent, at worst being arguably fraudulent.
His father Reg Bolton died in 1975 owning three properties in Tauranga: an empty section plus two houses; one house on Bellevue Road, the other on Sutherland Road. His will named daughter Wendy as executor. Brother Ken came to administer their late father’s estate in 1993 after Wendy died. Whilst Wendy had made little headway in finalising their father’s estate, further progress stalled with Ken’s appointment.
The High Court was told all beneficiaries had agreed that their sibling Alan could buy Sutherland Road from their father’s estate for $85,000. While the deal was finalised back in 1986, title was never transferred into Alan’s name. In 2000, Ken transferred title for Sutherland Road to a company called Minka Co Ltd with himself as sole director and shareholder. Two decades on, Tauranga City was demanding payment of rates arrears. Evidence was given that Alan had been giving money to brother Ken for payment of Sutherland Road rates, but Ken had stopped forwarding the money to Tauranga City.
Since 1986, Ken had been living at Bellevue Road rent free. In 2014, he used the property as security for a $250,000 loan; money used to buy another property in Tauranga. Failure to keep up payments on this $250,000 loan led to formal notice in 2020 threatening sale of Bellevue Road in a mortgagee sale. Rates were also in arrears.
The High Court removed Ken as administrator. Perpetual Trust Ltd was appointed to take control and to implement terms of Reg’s will. Title to the three Tauranga properties was transferred into Perpetual’s name. Reg’s will named his three children Ken, Alan and Wendy as beneficiaries. On Wendy’s death, Rachel her only child inherited her share. Rachel is now aged 49.
re Estate Reginald Bolton – High Court (8.10.21)
21.163