Hypotheticals by Manny Wood Published in the Coffs Coast Advocate on 17 August 2019.
Robert married his second wife, Christine, several years ago. He makes a will leaving the whole of his estate to Christine.
Five years later, Robert’s relationship with Christine breaks-down and they divide their assets.
They agree to sell their jointly owned home and to distribute the proceeds of sale equally. A buyer is found and contracts for the sale of the land are exchanged.
Robert tells his two children to a previous relationship, that he is making a new will and that they will receive the whole of his estate.
Unfortunately, shortly before settlement of the sale of the home, Robert unexpectedly passes away. He does not update his will.
Robert’s children make a claim against his estate, on the basis that Christine is the sole beneficiary and they receive nothing.
The children argue that they should be entitled to half of the proceeds of sale.
The Court notes that Christine also received Robert’s superannuation death benefit.
In dismissing the children’s claims, the Court rules that having been in a relationship with Robert for almost 10 years, it was reasonable for Christine to expect to be able to purchase a property in which to reside, and if this were to occur, Christine needed to receive the whole of Robert’s estate.
The children appeal the decision.
On appeal, the children argue the agreement that Christine and Robert reached regarding the division of their assets following the breakdown of their relationship meant that Robert had no further obligation to provide for Christine from his estate.
The Court of Appeal accepts the children’s argument and awards them Robert’s half share of the proceeds of sale of the home.
The court also orders Christine to pay the children’s substantial legal costs.
If you would like Manny to address a particular legal issue, send your request to manny.wood@ticliblaxland.com.au or call him on (02) 6648 7487.
