Hypotheticals by Manny Wood. Published in the Coffs Coast Advocate on 29 August 2015.
When John recently died at the age of 86, he left the bulk of his $1.5m estate to a friend of his, who had been looking after him in his later years. John was a widow and had just one child, James.
James was involved in a serious motor vehicle accident many years ago that caused him to become a paraplegic. James received compensation amounting to around $2 million. These funds are managed by the Protective Commissioner and are sufficient to meet James’ needs.
After James’ accident, his son Jimmy developed a close bond with his grandfather John, but he did not have a particularly close relationship with him during John’s later years.
Jimmy has spent some time in prison and is currently unemployed with virtually no assets. He suffers from depression and problems with his back and is responsible for the welfare of his six children.
Jimmy consults a solicitor regarding any rights he may have against John’s estate. The solicitor advises him that he may be eligible to make a claim against John’s estate on the basis that he was a partly dependent grandchild.
The 12 month period upon which to make a claim of this nature, was soon to expire and in order to protect Jimmy’s rights, his solicitor files a Summons in the Supreme Court of New South Wales.
John’s executor and Jimmy were unable to resolve the claim and the matter proceeded to a hearing.
In considering whether Jimmy was “partly” dependent, the court heard evidence that his grandfather provided him with a few hundred thousand dollars occasionally to assist him with his rent and living expenses. The court found that although there was only a limited extent of financial dependence, since James’ accident, Jimmy had developed an emotional dependency upon his grandfather which was sufficient to establish a “partial” dependency.
The court therefore found that Jimmy was eligible to make a claim and after assessing his limited earning capacity and lack of financial resources, ordered that according to “prevailing community standards” it is proper that he receive the sum of $225,000 from his late grandfather’s estate together with the payment of his legal costs.
