Will George get the bananas?

JULIE and Brian had been married for 20 years.

Brian owned a banana farm that had been in his family for generations.

When updating their wills, they decided that their son, George would inherit the banana farm as he had worked on the farm since he left school.

Julie is granted a right to reside at the farm for life.

To compensate their daughter Anna, it was agreed that she would receive a greater share of their other assets.

Julie and Brian also made powers of attorney nominating each other to manage their affairs should either of them lose capacity.

Unfortunately, Brian suffered a brain injury in a farming accident.

Julie decided that they should move to the city to ensure Brian could receive the best treatment, whilst also being closer to Anna and her family.

Julie’s relationship with George deteriorated and the two only communicated for updates on Brian’s health.

Brian now lacked the capacity to understand simple matters and was non-verbal.

Anna decided to buy a larger house so Julie could live with her and her family but the bank told Anna she needed additional security for her loan.

Julie, pursuant to Brian’s power of attorney, sold Brian’s family farm to Anna for $1, which provided greater equity for Anna to meet the bank’s requirements and allow for the purchase of her new home.

Five years later, when Brian died, George realised he had been blindsided and was now left with nothing.

George sought legal advice and commenced Court action.

The Court ruled that Julie was not acting in the best interests of Brian when she sold his farm for $1.

The Court ruled that the property, at the expense of Julie, had to be transferred to George.

The Court also ruled that the solicitor that allowed Julie to use her power of attorney to sell Brian’s farm was found to have breached their professional duties.

Thank you to Anthony Fogarty for his assistance with this column.

Email Manny Wood, principal solicitor at TB Law at manny@tblaw.net.au or call him on (02) 66 487 487.