Court Reduces Daughter’s Inheritance

A young woman has had her inheritance from her father’s estate substantially reduced by a decision of the Court of Appeal in Western Australia.

Olivia Mead’s father was Michael Wright, whose family had made a fortune in the mining industry, reports The West Australian. Her mother had had a brief relationship with Michael, which ended while she was pregnant with Olivia. Olivia never had a close relationship with her father and contact between the two was sporadic.

Michael Wright died in 2012 and left an estate worth around $2.7 billion. In his Will he left his other two daughters $400 million each, however Olivia was left just $3 million, which she wasn’t to receive until she turned 30.

Olivia contested the Will under the Family Provision Act 1972 (WA), claiming that it didn’t make adequate provision for her proper maintenance, support, education and advancement in life.

The case was heard in February 2015, when Olivia was 19, and the judge ruled in her favour, awarding her $25 million from her father’s estate.

However, her two half-sisters appealed the decision, and the Court of Appeal has now found in their favour. The appeal judges agreed with the original judge that the Will had not made adequate provision for Olivia, but described the award of $25 million as “flawed” and reduced it to $6.1 million.

In the judgment, Justice Michael Buss explained that:

“I consider that adequate provision from the Deceased's estate for the respondent's proper maintenance, etc, requires that she be provided with a capital sum which is likely to ensure her financial security for the remainder of her life. The capital sum should be sufficient to enable the respondent to purchase a reasonably substantial house with part of the capital sum and to invest the balance so that she will receive a reasonably substantial annuity for the remainder of her life.”

He said that $6.1 million would allow Olivia to purchase a house in Perth “that is adequate and proper for her” for around $1,500,000, and also provide an annuity of $100,000 per annum that will provide her with income for the rest of her life.

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