While their father thought it best to keep his daughter at a distance from any inheritance, leaving her a life interest only in her half share of his estate, her brother disagreed, later supporting a High Court application allowing her to inherit.
Grace Hanning was aged seventeen when their father signed what was his final will; dividing his assets in half on death: half gifted outright to his son Jack, the balance gifted to trustees on trust for the benefit of Grace.
Grace admitted she was going through a ‘tough period’ at this time.
Their father died six years later, in 2024.
The High Court was told the funds held in trust for Grace were used to buy a house in the Auckland suburb of Massey, where Grace lives with her two children.
Exigencies of trust law meant Grace was required to pay rent to the trust, set at $635 per week, with Grace having to negotiate with trustees for ongoing repairs needed at the property.
Rent payments were necessary because neither Grace, nor her children, would ever get full ownership of trust assets.
Terms of their father’s will state that on Grace’s death all trust assets are to go to her brother Jack and his children.
The High Court was told Jack considers it unfair that he and his family stand to eventually inherit what is in effect his sister’s half share of their father’s estate.
He supported the trustees’ application to have terms of the trust amended.
Using Trust Act powers, Justice MacGillivray terminated the trust, ordering all trust assets immediately be handed over to Grace.
Most affected are Jack and his children, who otherwise stood to inherit.
Jack had considered the financial consequences to both himself and his children when supporting termination of the trust, Justice MacGillivray said.
re Testamentary Trust of Alistair Graham Hanning – High Court (9.03.26)
26.096