Scroll for more

down-arrow-icon
gina rinehart estate dispute lang hancock litigation lawyers brisbane queensland

One Very Big Estate Dispute

I have been following with interest the news reports over the family dispute between Gina Rinehart and three of her children, in relation to a dispute over a trust formed from the Estate of Gina Rinehart’s late father, Lang Hancock.

Lang Hancock left a large portion of his Estate in a trust for his grandchildren (Gina Rinehart’s children). Gina Rinehart is the trustee of the trust and it is alleged that the trust was to come to an end when the youngest daughter turned 25 in September 2011.

In Court documentation filed, the three children allege they discovered that their mother changed the vesting date of this trust until 2068, effectively delaying the date the children to receive the proceeds from the trust until that time.

The three children are now trying to remove their mother as trustee of the trust.

I am not familiar with the details of this case, and therefore I am not in a position to provide my opinion. This case however does highlight the necessity to have a very detailed estate plan, especially when assets are owned in structures such as trusts and companies.

It is essential to consider many different objectives when preparing your estate plan. These include:

1. Who will have the effective control of the entities that own your assets.

  • If the asset is not in your own name, your estate plan should address who takes control of the assets, and when. This is highlighted in the current dispute in the Rinehart family. It is understood that the children were to receive approximately $1 billion each from the trust, and this has now been potentially delayed for a very long time;

2. Tax – Tax considerations, and the impact that your wishes have from a tax perspective, are very important factors that should be taken into account. It is important to work with an accountant and other advisors to ensure that your tax objectives are not breached in your estate plan;
3. Asset protection – It is important to take to consider personal circumstances of your beneficiaries and implement your estate plan to ensure that their assets, and assets of the estate are protected;
4. Financial support – It is very important to ensure that your spouse and children are properly supported from your estate, to avoid any potential claims;
5. Anticipating family disputes and battles for control – This is something that the late Lang Hancock may well have considered (I am not in a position to know what considerations were taken into account by him). By pre-empting and anticipating any potential family disputes, steps can be taken prior to death to minimise the risk of a dispute that could ultimately affect the value of the estate, and destroy family relationships;
6. Superannuation – It is important to consider what will happen to your superannuation benefits upon your death.

These are not all the considerations that need to be taken into account when formulating a strategy for your estate plan. By taking the time, and seeking appropriate advice, you can do everything in your power to reduce the risk of family dispute subsequent to your death. Often it will be the case that advice needs to be obtained from a lawyer, accountant and financial planner.

If you have any queries or any questions in relation to an estate dispute, estate planning or reducing the risk of a claim being made against your estate, please do not hesitate to contact me.

Share to your network

The information provided in this article is for general information and educative purposes in summary form on legal topics which is current at the time it is published. The content does not constitute legal advice or recommendations and should not be relied upon as such. Whilst every care has been taken in the preparation of this article, Wills, Estates and Probate Lawyers (WEP Lawyers) cannot accept responsibility for any errors, including those caused by negligence, in the material. We make no representations, statements or warranties about the accuracy or completeness of the information and you should not rely on it. You are advised to make your own independent inquiries regarding the accuracy of any information provided on this website. WEP Lawyers does not guarantee, and accepts no legal responsibility whatsoever arising from or in connection to the accuracy, reliability, currency, correctness or completeness of any material contained in this article. Links to third party websites or articles does not constitute any endorsement or approval of those sites or the owners of those sites. Nothing in this article should be construed as granting any licence or right for you to use that content. You should consult the third party’s terms and conditions of use in relation to any third-party content. WEP Lawyers disclaims all responsibility and all liability (including liability for negligence) for all expenses, losses, damages and costs you might incur as a result of the information being inaccurate or incomplete in any way. Appropriate legal advice should always be obtained in actual situations.

Subscribe to our Newsletter

Subscribe to our newsletter to get updates on everything Wills, Estates and Probate.

Written by—

Chloe Kopilovic

Call 07 3035 4077 to speak with our team now