Ownership of a holiday home at Omaha north of Auckland was centre of a family dispute following death of patriarch Laurie Evans; did his widow Doreen have a life interest only in the property?
Children Susan and Owen were pitted against their brother-in-law David Milne.
The High Court was told David Milne was widowed prior to death of his father-in-law Laurie Evans, but Laurie did provide in his will for both David and David’s children; they were collectively entitled to three-thirteens of his residual estate.
There was no immediate payout on Laurie’s 1999 death.
Terms of Laurie’s will gave to his widow Doreen ‘the free use, income, occupation and enjoyment’ of estate assets, with the ‘then balance’ on her death to be divided between his descendants.
Doreen died more than twenty years after husband Laurie.
Estate money was used in the year after Laurie’s death to buy an Omaha Beach property at a then cost of some $410,000. Title was registered in Doreen’s name.
On her death, David Milne said the Omaha property remained an asset in Laurie’s estate; claiming his family was entitled to a three-thirteens share of the value.
Justice Johnstone ruled Doreen’s right to ‘use’ estate assets meant any assets transferred into her name became her own property; they were not held on trust by her for final beneficiaries named in her late husband’s will.
Estate distribution of the ‘then balance’ of Laurie’s estate on Doreen’s death in 2022 did not include the Omaha property; it was no longer part of his estate.
The court was told siblings Susan and Owen inherit Omaha.
David and his children did receive a cash payout in the final wash-up of Laurie’s estate, but no share in the value of Omaha.
Value of their cash payout was not disclosed in the court judgment.
Sutherland v. Milne – High Court (31.03.26)
26.119