Written by The legal battle over the $19 million estate of former Miss World contestant and Sydneysider Margaret Thelen recently played out in the Supreme Court of New South Wales, offering a compelling insight into how inheritance disputes are resolved under NSW succession law. Gail Thelen, once known as Gail Petith, rose to fame as a runner-up in the 1974 Miss World competition before joining the police force, following in the footsteps of her father and brother. However, it was her marriage to businessman Werner Thelen that caused her to amass significant wealth. After Werner’s death in 2014, Ms Thelen entered into a romantic relationship with Steven Rundle Bone, a fellow passenger she met during a cruise shortly thereafter. From that point forward, Mr Bone became an increasingly significant figure in Ms Thelen’s financial affairs.
Between 2015 and her death in 2021, Ms Thelen prepared a series of wills, providing considerable generosity to Mr Bone. By the time of the 2019 will, he was entitled to a $1 million legacy and a one-third share of the income generated by a multimillion-dollar testamentary trust. In 2021, just days before her death, Ms Thelen purportedly revised her will once more, this time granting Mr Bone the right to reside for life in her $12 million Clontarf property, or to use its proceeds to secure alternate housing. It was this final revision that became the subject of dispute. Ms Thelen’s brother, Paul Petith, brought the matter before the Supreme Court, alleging that his sister lacked testamentary capacity and that the final amendments were made under the undue influence of Mr Bone. Justice Ian Pike was ultimately asked to decide whether the 2021 will could be admitted to probate or whether an earlier version, executed in 2019, should stand. In NSW, testamentary capacity (the ability of a testator to understand the nature and effect of a will) is not presumed where evidence of cognitive decline exists. In Ms Thelen’s case, the court was not convinced she fully understood the terms of the 2021 will, particularly in light of her deteriorating health, chemotherapy treatments, depression, and alcohol-related cognitive impairments. While Justice Pike acknowledged that the relationship between Ms Thelen and Mr Bone was enduring, he also noted that Mr Bone was the primary beneficiary of the later wills and had played a central role in their drafting.
Accordingly, the court admitted the 2019 will to probate. It was deemed to reflect a point in time where Ms Thelen retained capacity, and where her testamentary intentions were clear and legally valid. Mr Bone, under the terms of that will, will receive a $1 million legacy, $2 million from Ms Thelen’s self-managed super fund, and an estimated $320,000 annual income from the testamentary trust. His attempt to claim further provision from the estate was dismissed, with the court finding that he remained comfortably positioned to secure suitable accommodation, even without lifetime residence rights in the Clontarf property.