The gift that almost got away

Published in Coffs Coast News of the Area on 6 November 2026.

Collette, aged 82, makes a will directing that her holiday unit in Forster be sold following her death, with the proceeds divided equally between three charities: The Williams Community Foundation, Hearthhaven Trust and Cloverpaw Animal Foundation.

She leaves the remainder of her estate to several family members, including her niece, Petra, who has long been the family's unofficial point of contact whenever Collette needs a hand. Collette also appoints her as executor.

Years later, Collette decides to sell the unit herself, signing a contract for $610,000.

Settlement is scheduled eight weeks later, with a special condition allowing the vendor to rescind the contract if either party dies before settlement.

Sadly, Collette passes away just five days before settlement.

Petra obtains a limited grant of administration and completes the sale, with the proceeds held by the estate's solicitors.

However, the question of who is entitled to the sale proceeds soon sparks disagreement.

Petra argues that the gift to the charities has been 'adeemed', given that Collette had already entered into a contract to sell the unit before her death. She maintains that the proceeds should instead fall into the residuary estate, of which she is one of several beneficiaries.

The charities, who were not consulted before Petra completed the sale, are less than impressed. They maintain that Collette's will clearly entitles them to the money.

The dispute reaches the Supreme Court, where Petra's argument is unsuccessful.

The Court finds that Collette's will gifts the proceeds of sale, rather than the unit itself, and the contract entered into before her death does not defeat the charities' entitlement.

The Court also raises concerns about Petra completing the sale without consulting the charities, particularly given her own interest in the estate.

Ultimately, the charities are entitled to the proceeds, while Petra faces the possibility of personally paying their legal costs.

Thank you to Ellysha Laklem for her assistance with this column.

If you have a request for a Hypothetical, call Manny Wood on (02) 66 487 487 or email [email protected].

This fictional column is not legal advice.