29 Overall the defendant and his family have been successful by their hard work and enterprise and they have built up substantial assets. Although they have borrowings these are not significant in the context of the assets and, indeed, at the present time, there is a borrowing facility available to the defendant of $5,500,000 with the PIBA which is only drawn down to $4,800,000
30 It is apparent that the defendant worked hard with his father throughout his life and contributed to the building up of the whole family's assets including those held by the deceased. He and his wife looked after the deceased and his wife in their old age and continued their close contact. Indeed, from 1995 the deceased lived with the defendant in the defendant's home. Apart from looking after the deceased in his old age the defendant was good to his father as he took him to see his doctors, to reunions held with old friends and to see old comrades from the Second World War. Clearly there was a close relationship with the deceased. The defendant contributed to the estate and its build up in many ways by his efforts over a lifetime of working with his father.
31 In 1993 the deceased told the defendant that he had left him the property Hells Gate. As a result the defendant set about improving that property and in particular the part which was owned by the deceased. The partnership spent $374,196 on improvements to the property. This is one more example of the contribution the defendant made to the estate.
32 It is necessary to see how the plaintiff submits that she has been left without adequate and proper provision for her maintenance, education and advancement in life. As a result of the legacy left to her by the deceased, the plaintiff is in a position where she owns her own home and an unencumbered car.
33 There are two matters which the plaintiff put forward as needs for capital. These are, first, to install a security system in her home in respect of which she has had quotes of $1,695 and $1,485. Second, she wishes to insulate her home to make it cooler in summer and she has had quotes for $2,590 and $1,781.
34 Apart from this the plaintiff put forward a need for a sum for her maintenance. I have already dealt with her inability to obtain work. As I have indicated she receives a pension of $200 per week.
35 In her affidavit sworn 29 January 2002 the plaintiff put forward an analysis of her expenditure for the period between 23 September 1999 and 31 December 2001. Her expenditure in that period was $119 780. She included in her expenditure an amount of $45,337 which she described as once only items which would not be incurred in the future. This left her with a weekly expenditure of $630 and she submitted that she should receive a capital sum which would be sufficient to give her that income.
36 At present she is receiving an income of $200 per week from the age pension. The difficulty with that source of income is that it is subject to a means test. If she has assets apart from her home amounting to $280,000 she is not entitled to the pension. She is allowed to have her home and other assets amounting to $141,000 before there is any effect on the pension which she presently receives. There was placed before the court actuarial evidence as to what capital sum would be necessary in order to make up her income. That evidence was based on the mortality rates in Australian life tables 1995/1997 and a discount rate of 5% per annum compound. The plaintiff's life expectancy was 23.6 years and the value of $630.88 per week for an expected life time from 1 February 2002 for a female born 27 June 1941 is $436,674. The value of 430.83 per week is $298,206. There is one problem with this evidence, namely, that it is based upon a discount rate of 5%. That rate is, of course, the rate fixed for the purpose of motor vehicle accident legislation in New South Wales. The proper calculation would involve the application of a 3% discount rate which is a consequence of the case of Todorovic v Waller [1981] 150 CLR 402. Since reserving judgment, the parties have agreed upon the relevant discount rate.
37 There was a substantial attack on the plaintiff's claim in two areas. The first related to the level of expenditure which the plaintiff claimed was necessary and the second related to whether the claim for this additional support was justified in all the circumstances of the estate.
38 It is clear that the plaintiff has been living on her capital over the last three years. From the legacy which she was paid the plaintiff was able to provide a home and car for herself and she also received a sum of $51,000 in cash. In October 2001 she received $27,000 from the sale of the Deniliquin property and from December 1999 to the present she has received her pension. The total sum thus received amounted to $89,000. That has all been expended.
39 The analysis carried out by the plaintiff was probably the only practical one which she could do. She went through the bank statements to try to allocate all payments to different categories of expenditure. Some of these were criticised as being extravagant. For example, in that period she spent $7,671 on clothes. Holidays were $6,676, jewellery expenditure was $10,322 and gifts to her family members amounted to $4,960. In her calculations the plaintiff recognised that her expenditure on jewellery was excessive and deleted jewellery from the estimates to which I have referred.
40 There was criticism of the plaintiff's spending which was described in submissions as a discretionary expenditure. The plaintiff has reached the stage in life where she is entitled to some small luxuries. Indeed, some of the matters to which reference was made are ones which are important for the plaintiff's well-being. Her state of anxiety obviously needs to be satisfied by the security of the present home and she needs to be able to have the company of the friends she has made in the area. She perceives her appearance as important and her wishes in this regard should not be put aside lightly.
41 Looking at the area of expenditure, to which I have referred, it seems to me that some of these items are probably above and beyond what would normally be required by the plaintiff having regards to her present situation and the lifestyle which she has been accustomed to in the past. I have come to a view about what is a necessary level of expenditure and I think the most appropriate course to take is to make some deduction for this excess. For example, the plaintiff conceded that she had to spend a lot on clothes because when she was left by her husband she had very little clothing. I would have thought that $10,000 would be an appropriate figure to reduce the expenditure over the period in question. This would put her weekly expenditure at $546.
42 In accepting that the plaintiff has only a need for a sum for her maintenance of $546 per week, the next consideration is whether it is appropriate, in all the circumstances, that she receive a lump sum to produce such a sum. Using the 3% tables the lump sum for $546 per week is $475,456 and for $346 per week is $301,296. The defendant in his submissions referred to the principles which are articulated in a number of cases and, in particular, Pontifical Society for the Propagation of the Faith v Scales 107 CLR 9. There the Chief Justice said the following at page 19:-
"It has often been pointed out that very important words in the statute are "adequate provision for the proper maintenance and support" and that each of these words must be given its value. "Adequate" and "proper" in particular must be considered as words which must always be relative. The "proper" maintenance and support of a son claiming a statutory provision must be relative to his age, sex, condition and mode of life and situation generally. What is "adequate" must be relative not only to his needs but to his own capacity and resources for meeting them. There is then a relation to be considered between these matters on the one hand, and on the other, the nature, extent and character of the estate and the other demands upon it, and also what the testator regarded as superior claims or preferable dispositions. The words "proper maintenance and support", although they must be treated as elastic, cannot be pressed beyond their fair meaning. The Court is given not only a discretion as to the nature and amount of the provision it directs but, what is even more important, a discretion as to making a provision at all. All authorities agree that it was never meant that the Court should re-write the will of a testator. Nor was it ever intended that the freedom of testamentary disposition should be so encroached upon that a testator's decisions expressed in his will have only a prima facie effect, the real dispositive power being vested in the Court."
43 The submissions also referred to the fact that the legacy the plaintiff received under the will had put her in a position where she received an unencumbered house. Reference was made to the numerous cases where it has been suggested that such provision is normally not proper in the case of a child.
44 For example in Shearer v The Public Trustee and Hawke v The Public Trustee, Young J, 23 March 1998, his Honour had this to say:
"The community's attitude is not to be judged by a feeling as to whether it is morally wrong for a person to leave property otherwise than to her spouse or children. One must really look at the obligations to provide for persons who have some dependants.