When drafting a Will, people in New South Wales are able to enjoy testamentary freedom, meaning they are able to leave their Estate to whomever they choose. Whilst this gives them a great deal of freedom, controversy can arise when there are concerns of coercion and undue influence during the Will making process. This occurred in a recent high profile case.
Dr Alexakis, a respected physician, found himself embroiled in a controversial situation after inheriting a substantial sum of money from one of his wealthy patients after their death in 2017. The patient was Mr McClure, an elderly individual with no immediate family. He had developed a close bond with Dr Alexakis over years of treatment and care and had decided to update his Will to reflect this. When Mr McClure died, it was revealed that he had left a significant portion of his estate to the doctor, totalling close to $24,000,000. This bequest raised eyebrows within the medical community and the public, leading to debates about the ethics of such an inheritance.
The Will was contested by beneficiaries of Mr McClure’s previous Will, the Salvation Army and two neighbours. They claimed Dr Alexakis had acted inappropriately in developing such a close personal relationship with Mr McClure and in doing so was exerting undue influence over him to amend his Will. Clearly, had the Will not been changed, the claimants would instead have shared in the very large inheritance.
Further concerns arose when it was discovered that Dr Alexakis had been the one to introduce the elderly man to the lawyer who helped him update the Will. It had initially been changed to leave 65% of his estate to the doctor but was updated again very shortly before Mr McClure’s death to leave 90% of the estate to Dr Alexakis. Dr Alexakis claimed that he had only connected the gentleman with his lawyer after he had asked for recommendations for a lawyer to help him amend his Will.
The case has played out across various NSW courts over the last 7 years. The Court of Appeal decided in June 2024 that, although it may not have been wise for Dr Alexakis to develop such a close personal relationship with his patient, he had not exerted undue influence over him and was unaware that the money had been left to him until after the death of his patient. Dr Alexakis was therefore entitled to receive the almost $24 million which had been left to him by Mr McClure.
Whilst you have testamentary freedom in NSW, it is important to receive proper legal advice as to the potential implications for your estate when updating your Will and changing beneficiaries. For advice regarding potential claims on your Estate and changing your beneficiaries, please contact our offices and we’ll be more than happy to assist. Our Estates Team has decades of experience in this area.