His mother stole $600,000 from a trusting friend through misuse of an enduring power of attorney. Son Michael Seale was ordered personally to make repayment after winding up his parents’ estates without first ensuring the debt was repaid as an estate liability.
The High Court was told Noel Foster signed an enduring power of attorney in favour Sharmaine Seales in October 2020. She was a work colleague at a garden centre; a long-time friend and someone he trusted.
Mrs Seales, together with Mr Foster, then met with staff at the Manukau branch of Bank of New Zealand setting up signing authority for her over all Mr Foster’s accounts.
In the following three months she took $600,000 out of his bank accounts; $125,000 transferred into her own bank account, the rest into a joint bank account held with her husband.
Both Mrs Seales and her husband died within weeks of each other some eighteen months later. Sons Michael and Jamie were appointed administrators of each parent’s estate.
Evidence was given of them making no attempt to ascertain extent of estate liabilities, the debt owed Mr Foster being a debt of both their estates.
As joint estate administrators, the two sons transferred to themselves as beneficiaries their parents’ Manurewa home and proceeds of bank accounts; all completed within one month of their surviving parent’s death.
The Public Trust, as property manager for Mr Foster, sued to recover his lost $600,000.
Jamie paid $204,800 in an out of court settlement. Legal action against him was discontinued.
Michael, who lives in Western Australia, did not defend the claim.
After a formal proof hearing, Justice Andrew ruled Mrs Seales acted in breach of trust when misappropriating money taken from Mr Foster’s bank accounts.
On her death, her estate was liable for repayment.
Michael as estate administrator became personally liable to make good this estate debt, having prematurely distributed estate assets.
He was ordered to pay $396,000.
Estate administrators seeking to avoid personal liability for unknown estate debts can protect themselves by first giving Trusts Act notice of intention to wind up an estate, Justice Andrew pointed out.
Foster v. Seales – High Court (23.04.26)
26.145