Protecting an Elderly Client’s Home: How MDL Recovered a Million-Dollar Interest Lost Through a “Gift Gone Wrong”
At McCarthy Durie Lawyers, we regularly see the best of human generosity — and sometimes, unfortunately, the worst of how that generosity can be exploited. A recent matter involving an elderly client demonstrates both the risks of informal arrangements and the power of timely, strategic legal intervention.
Our client, a kind and charitable older gentleman, had agreed to benevolently gift a half interest in his home to a long-term friend who had fallen on difficult times. He saw the gesture as an early legacy — something aligned with what he might one day leave under his Will.
But things did not unfold as intended.
When the transfer was prepared by the friend’s own lawyer, a critical mistake was made: the transfer documents recorded not only the friend, but also the friend’s spouse, as joint tenants with our client.
That seemingly small variation carried devastating consequences:
Instead of gifting a 50% interest, our client had inadvertently gifted two-thirds of the entire property; and
Because the property was held as joint tenants, our client’s entire remaining interest would automatically pass to the friend and spouse upon his death — leaving the beneficiaries under his Will with nothing at all.
When our client realised the magnitude of the error, he asked his friend to correct it. They refused. Feeling deceived and distressed, he turned to us for help.
Our response was immediate and strategic.
We:
Lodged a caveat to freeze dealings with the title;
Severed the joint tenancy, preserving at least a tenancy-in-common share; and
Began preparing legal proceedings to restore our client to the interest he had always intended to retain.
After months of tense negotiation, we secured a full reinstatement of his 50% ownership interest — an interest worth millions of dollars. The resolution protected not only our client, but also the beneficiaries under his Will who otherwise would have been disinherited entirely. And we were able to accomplish that without recourse to protracted litigation.
We were able to give effect to our client’s original benevolent intentions, despite the cynical misconduct of the recipients and the deeply personal anguish caused to him.
This matter is a powerful reminder: even the kindest decisions require careful legal structuring. A small error can have life-changing consequences — and the right advice can reverse them.
If you or someone you care about is contemplating gifting property, restructuring ownership or resolving a property dispute, speak with our Property Law team. Early advice can protect your assets, your intentions and your peace of mind. We’re here to help.
