June 6, 2025
Legal Hypothetical: Disturbing misuse of grandmother’s funds

Legal Hypothetical: Disturbing misuse of grandmother’s funds

GLORIA, 101 years old, sold her house and the proceeds of sale were deposited into her granddaughter’s account. It is not clear how this occurred.

Gloria was found to be under a legal incapacity and her “tutor” commenced action in the Supreme Court, seeking an order that the granddaughter “account” for the funds.

The Court observed that despite the granddaughter being in a position to possess the knowledge of what happened to the funds, she was in a “hopelessly inadequate position to persuade the Court as to what the money was spent for, why it was spent and that the expenditure was for the benefit of the plaintiff or lawfully with her authority”.

The defendant was however able to account for the spending of $225,000.

This included the “defendant’s overseas travel expenses [to the Greek Islands], the purchase of an electricity generator which went to the defendant’s house not the plaintiff’s house, a high-speed printer for which the plaintiff could have made no legitimate use, numerous ink cartridges for a printer and expenses in relation to refurbishment of the defendant’s ensuite bathroom”.

A total of over 400 transactions were identified, which also included the purchase of alcohol, the payment of vet bills, the defendant’s credit card and school fees, as well as supermarket, Officeworks and Bunnings purchases.

The plaintiff also tenders evidence in support of the transfer of two large parcels of company shares from Gloria to the defendant.

The Court orders judgment in favour of the plaintiff in the sum of $225,000 and that the transfer of shares be set aside.

Noting that the granddaughter had initially offered the repayment of just $3,000, the Court ordered that she pay interest on the judgment amount and pay the whole of both parties’ legal costs.

No criminal charges were brought.

This case demonstrates the disturbing and flagrant nature of elder abuse and the importance of community vigilance in identifying such wrongdoing.

This fictional column is not legal advice.

By Manny WOOD, Solicitor