BETTY passed-away 20 years ago.

She appointed her son, Daniel, as her executor and left half of her estate to her granddaughter. The granddaughter’s inheritance was approximately $150,000.

Betty’s will stated that her executor was to hold her granddaughter’s inheritance on trust, until she turned 21.

She recently attained that age.

Due to an estrangement, the granddaughter seeks legal advice regarding the funds held on trust by her father.

Her solicitor writes to Daniel but does not receive a response. Proceedings are commenced in the Supreme Court.
Daniel does not appear at the hearing.

The Court notes the granddaughter’s dire financial circumstances and makes orders to the effect that Daniel must distribute the funds, provide accounts regarding the management of the funds and that he must pay the Court costs.

Daniel is served with the Court orders but does not comply.

Fearing that the funds have been misappropriated, further orders are sought, seeking Daniel’s arrest for contempt of Court.

Daniel is arrested and brought before the Court. He acknowledges the seriousness of the charges and proceedings are adjourned for sentencing.

In the meantime, the granddaughter’s inheritance is located as “unclaimed monies” held by the Commonwealth Consolidated Revenue Fund.

The funds are released to her and Daniel pays her legal costs.

At sentencing, the Court considers the circumstances of the contempt, the consequences of the contempt, Daniel’s personal circumstances and the need to deter others from repeating the contempt.

The Court finds, beyond reasonable doubt, that Daniel’s actions constituted such wilful breaches of the orders of the Court that they were criminal in character.

On the basis of a guilty plea, and an assessment of “mitigating” and “aggravating” factors, Daniel is sentenced to four months imprisonment and again is ordered to provide accounts relating to the funds that he once held on trust.

After providing the requisite accounts, Daniel is “afforded clemency” and is discharged from custody.

Email Manny Wood, Principal Solicitor and Accredited Specialist in Wills and Estates at TB Law at manny@tblaw.net.au or call him on (02) 66 487 487.

This column is only accurate at today’s date and is not legal advice.

By Manny WOOD, Solicitor