Estate trustees were brothers named by their father’s will
Acknowledging the breakdown of the relationship between two siblings who were co-executors of their father’s estate, the New Zealand High Court discharged one brother under s 21 of the Administration Act 1969 and made the estate cover the application costs.
Estate of Smith [2026] NZHC 2733 concerned the estate of Norman, who made his last will on 26 May 2017. Under the will’s terms, Norman:
Paul and Michael were this family trust’s beneficiaries.
In April 2022, seemingly without Michael’s knowledge, Norman settled a new trust and transferred $450k into it. Paul and Mr Moloney were the new trust’s trustees. Norman’s grandchildren were apparently the new trust’s beneficiaries.
In May 2022, trustees Paul and Mr Moloney advanced $450k for Norman to purchase an occupation right agreement (ORA) for a Christchurch retirement village unit, into which Norman moved. Norman and the two trustees executed a deed of acknowledgement of debt.
Following Norman’s death, his estate’s principal assets were the ORA’s termination proceeds, which eventually amounted to $377,027.53.
After repaying Norman’s liability under his debt to the new trust and considering the estate’s administration, accounting, and legal costs, the estate would become insolvent.
Before the High Court, Paul applied to remove Michael as Norman’s estate administrator. According to Paul:
By consent orders, the High Court removed Michael as estate executor. Applying the settled principles, the High Court found it necessary and appropriate to remove Michael as executor to complete the estate administration under the terms of Norman’s will.
The High Court accepted that the relationship between the executors, who could no longer work together, had irretrievably broken down. The High Court noted that Michael did not take steps to administer the estate despite the estate solicitors’ repeated requests.
The High Court added that Michael, who felt disappointed that he did not know about his father’s settlement of the new trust during his lifetime, wished to resign as an executor and personally confirmed his consent to his removal.
Here are some other recent decisions by the High Court of New Zealand involving estate matters.
On 9 July 2026, the High Court awarded costs of $37,030 to a testator’s half-brother, who was the most successful party in the estate proceedings, given that he obtained two investment properties based on his testamentary promises claim.
In an estate dispute between siblings, the High Court issued an 8 July 2026 order requiring the brother to vacate and give up possession of the property where he was residing to his sister as administrator of the estate of their late father.
On 12 June 2025, the High Court granted applications by an estate’s three executors and trustees requesting permission to commence, via an originating application, a proceeding seeking to discharge the third executor and trustee whom the testator named in his will.
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