26 May 2023

Family Trust: Hemara v. Lowe

Expecting that the family home would remain within their family, it was a shock to find descendant Kellee Lowe had borrowed money against the Hikurangi property in Northland and was trying to sell it.  The High Court removed her from the title for breach of trust.

The court was told children of the late Joe and May Hemara agreed after their parents’ deaths that the family home at Waro Drive should remain within the family and ultimately be passed on to the next generation.  This Maori tradition proved difficult to fit within current land ownership registration rules.  Initially, all nine children were registered as owners.  Subsequently, ownership was transferred into the name of Kellee only.  She is the daughter of one of the Hemara children.   Kelle agreed not to mortgage or sell the property and to hold it in trust for descendants of Joe and May.

Legal action was taken when family discovered Kellee had mortgaged Waro Drive and was now looking to sell.  She did not appear in court, but sent a message from Perth denying any trust had been agreed and saying she would ‘never agree to the house being taken off her.’  She claimed to have rebuilt and extended the home at a cost of ‘hundreds of thousands of dollars.’

Justice Jagose ruled Waro Drive had been transferred to Kellee on trust and the terms had been breached.  Kellee was removed from title to Waro Drive, replaced by two other Hemara descendants as trustees.  The new trustees are required to prepare a formal deed of trust and then have it approved by the court.

Hemara v. Lowe – High Court (26.05.23)

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