With family trusts holding assets in excess of twenty million dollars, daughter Lisa Knight claims she has been treated unjustly; promises that all children would receive at least one million dollars in their lifetime have not been honoured and her late mother’s estate has been impoverished by having all assets of any value switched into family trusts, she alleges.
Lisa took legal action in the High Court attempting to crack open the family trusts, hoping to have her late mother’s estate recover assets having them available for her claim under the Family Protection Act.
The High Court was told Lisa is one of three children born to Sally Elizabeth Glass, known as Libby. Libby married Denver Glass in 1987. Libby had three children from an earlier marriage; Denver had four children from his earlier marriage. Libby and Denver had no children. Libby died in February 2020, suffering from dementia. Libby’s business interests centred on a fashion boutique called Posh of Holmwood based in the Christchurch suburb of Merivale; Denver developed a meat processing business called FreshPork. Together, they purchased and renovated multiple properties in and around Christchurch. These properties were each held in various family trusts.
Libby’s and Denver’s children were told not to expect any inheritance; each would receive one million dollars in their lifetime to help set them up in life. Libby and Denver intended to give the rest on death to charities of their choice.
Evidence was given of tensions between Denver and his step-daughters Lisa and Nicole. Denver was described as controlling. Nicole received financial support totalling one million dollars to assist with her purchase of a property in Sydney. Expecting to receive the funds as a gift, Nicole found the money was instead advanced as a loan with a mortgage registered against the Balmain property. This was to protect the home from matrimonial property claims, Denver said. In 2018, he attempted to evict Nicole from the property. Lisa told the High Court she had received some financial support but always on Denver’s terms. She had been allowed rent-free occupation of a large Christchurch home in Kotare Street owned by one of the family trusts provided she met the costs of rates, insurance, repairs, and maintenance. Denver has refused to honour promises made in Libby’s lifetime to transfer ownership of Kotare Street to her, Lisa says. Lisa has received benefits to the value of $315,000, Justice Dunningham said, but has been left in her mid-fifties with no prospect of financial security or of owning her own home.
Justice Dunningham authorised legal action be taken in the name of Libby’s estate to recover, as relationship property, assets held by family trusts. If successful, these assets become available for a claim by Lisa against her late mother’s estate.
Glass v. Glass – High Court (5.12.22)
23.009