Cancer patient fights for early payout of parents' estate by Public Trust

Wednesday, 1 May 2024

Kaz Plum with her parents, Rex and Barbara Plum, of Nelson.

Kaz Plum’s father died in 2011, and her mother in 2022.
She wants an earlier payout after being diagnosed with osteoarthritis and later Stage 3 cervical cancer.
But Public Trust declined, and Plum has engaged lawyers.

Kaz Plum needs medical treatment but is locked in a legal stoush with Public Trust trying to access money left by her late parents.

Australian-based Kiwi in legal stoush over inheritance

The 52-year-old was the only child of Rex and Barbara Plum, of Nelson, who died in 2011 and 2022, respectively.

“It was just me, mum and dad,” the now Gold Coast-based personal trainer said.

Plum left Nelson for the Gold Coast to escape an abusive relationship in 2010: “I came here to start afresh”.

Kaz Plum moved to the Gold Coast in 2010.

But she regularly returned to her home town, particularly after her mother suffered a stroke in 2015. Plum remained her mother’s enduring power of attorney, which included looking after her finances.

Plum told Stuff her parents changed their will in 2009 with the intention of protecting their assets for her, particular from any past or future partners.

Kaz Plum with her mother Barbara Plum, of Nelson.

Her parents’ estate left the majority of their six figure estate to their only daughter, apart from three charities, the SPCA (which received $20,000) the Heart Foundation ($5000) and Riding for the Disabled ($5000).

“I want them to have it . . . but me the rest so I can get on with my life.”

What Plum wanted was an early release due to recent health issues.

The issue first unfolded when she sought to access her money after being diagnosed with osteoarthritis, having already self-funded a hip replacement.

“I sure did not expect or intend to have a crippling debilitating condition and to be living every day in chronic pain that is progressively getting worse.”

Kaz Plum on a flight. She returned to New Zealand four times a year to see her mother.

That included needing both shoulders replaced, but facing a two-year wait under the public health system.

“I need to be able to get help and medical treatment now . . . to allow me to live my life now whilst I am still able to enjoy things and experience adventures, as it is fast being stolen away from me by my health.”

Plum worked with a diverse range of athletes, including those involved with bodybuilding and motorsport, but her health had impacted that work

Those health matters were compounded when she was diagnosed with Stage 3 cervical cancer earlier this year.

Plum engaged lawyers on both sides of the Tasman to get earlier access to her money, given her health issues. That included her lawyers suggesting the charities be paid in full - or receive extra - in order to expedite the process of her receiving a payout.

Plum’s lawyers argued the intent of her parents’ will was completely different now to how it was when that document was drafted 15 years ago, and supplied supporting affidavits from those close to her late parents.

A February letter to her lawyers by a specialist trustee said: “The intent of Rex and Barabara Plum establishing the trust is quite clear to us that the funds were to be held on trust for Karen’s benefit, and that of the charities”.

“We are of the view Mr & Mrs Plum wished to ensure this was adhered to by not allowing Karen to remove Public Trust as trustee.”

Plum baulked at suggestions she was not capable of managing the money herself, as she had run successful businesses, owned her own property and was financially literate.

Plum said despite asking for 18 months for monthly statements from Public Trust, she had received nothing and fears the estate had declined significantly.

It appeared Public Trust planned to “drip feed” Plum’s share of the estate over 38 years, which was calculated as her life expectancy.

That felt particularly cruel, given her health diagnosis.

She told Stuff Public Trust wanted to send her monthly payments, which she said covered half of her expenses.

“Then I argued with them every time they send money internationally, it’s going to cost between $15 and $30 plus all the admin fees, so it was a complete another waste of money and they agreed to pay it quarterly in the end.

Kaz Plum would often return to Nelson to see her mother.

“But by the time it transfers from New Zealand to Australian dollars and all the transaction fees for international, I lose another big chunk of it.”

A spokesperson for Public Trust said “We followed the wishes of Karen’s parents set out in their will, their letter of wishes and the terms of the family trust”.

“As soon as we were legally in a position to pay her some funds we did.”

“We feel for Karen’s situation. While we have a well-defined role as trustee, we want to make things as easy as possible for anyone going through a hard time.”

As for the charities, the spokesperson said many people choose to leave a gift to causes in their wills that they are passionate about.

“If it is in the will, we have to follow it.”

As for Plum engaging lawyers in the process, the Public Trust spokesperson said “people often take independent legal advice to clarify their situation”.

“We have been engaging directly with Karen, and will continue to provide her assistance and support. Our commitment is to put her interests at the heart of our decision making as we work through our responsibilities as trustee

Plum said both of her parents wanted her to get on with her life, and her last conversation with her mother involved her going in a trip overseas.

“Mum said ‘just do it’.”

“She said ‘get out there live your life and enjoy it now while you can, there is plenty of money here for you, for your retirement . . . you are taken care of’.”

Public Trust, which was established in 1873, was New Zealand’s largest provider of wills and estate administration services. The autonomous Crown entity also provided a range of products and services including legal, financial, investment, trusts, estate administration, and estate protection.