Dead man’s family driven to homelessness by a public trustee

This article is part of a series. For the full series, go here.

Some readers may find aspects of this article distressing.

John Munroe would be horrified to see what the Queensland public trustee has done to his partner and son.

Shortly before his death from aggressive kidney cancer in 2006, Munroe used the state’s public will service to organise his $440,000 in assets. But the state has been so reluctant to release funds to his family that his partner, Tania Hawting, and son, Ethan Hawting, are now homeless.

As Crikey previously covered in the series Kidnapped by the State, Queensland officials are refusing to release all Munroe’s funds, squandering an estimated $100,000 in legal and administration fees.

As Munroe was never placed under a guardianship order, his real name can be used. Strict gag laws restrict anyone under personal administration from going public.

The office of the public guardian, which oversees a person’s care and accommodation, and the office of the public trustee, which manages a person’s finances, are supposed to have the best interests at heart of those who are no longer able to make decisions for themselves. 

But Crikey has heard stories of state public guardians disregarding people’s medical wishes and do not resuscitate orders, sending them into aged care homes and selling their houses without consent. 

Six animals, a mother and son live on donations

Earlier this year, Hawting sought funds from Munroe’s estate for a down payment on a property in rural Queensland because she and Ethan were being kicked out of their rental home on the Sunshine Coast. 

After months of rigmarole, they are no closer to having a permanent home. After several nights living in their car — with five cats and dog — they’re now in a small cabin in a caravan park, close to the home they wanted to buy. 

“I was so lacking in sleep by the time I got here my mind wasn’t functioning,” Hawting told Crikey. “All our personal items are in a shed on the property we want to buy.” 

The cabin has a bunk bed, double bed, kitchenette and microwave in the same room. Hawting had to ask the neighbourhood centre for donations of toiletries, hardly the life Munroe would have pictured for his family. 

“He would be horrified if he was alive and knew what was happening,” Hawting said.

Ethan is entitled to almost $100,000 when he turns 18 in July next year, and Hawting is entitled to funds to cover purchases and necessities the public trustee approves, which has come in dribs and drabs. In 15 years they have received less than $200,000 of Munroe’s money. The estate has accrued less than $100 in interest in that time. In 2016 the public trustee blamed the global financial crisis for the poor investment return. 

Hawting and Ethan have requested early access to Ethan’s funds to buy the Charleville home. Ethan is on the autism spectrum and confirmed to Crikey he wants to use his inheritance to buy a house and continue living with his mum while remote-studying TAFE courses.

Hawting is 60 and lives on the ​​disability support pension — less than $500 a week to house, clothe and feed the pair.  

The public trustee initially said Ethan could not use his inheritance to buy a joint home with his mother because it would make him ineligible for the first homeowner’s grant. Later he was allowed to buy a home, with Hawting signing initial paperwork for the Charleville property. 

But at the ninth hour, finances were rejected for a mortgage with Ethan’s name on it because he is unemployed. Hawting says she suggested she sign a statutory declaration that Ethan’s name is added to the house title once he turns 18. She says the public trustee refused. 

Where are the discretionary powers? 

The Queensland public trustee has discretionary powers it could use to “split income between a family group for a period”. But in Ethan and Hawting’s case, it’s refused to use them. 

“That’s the law they created for themselves,” Hawting said. “They could choose to forward me the money and go through with my name for the house, but won’t.” 

Hawting says although the trustee released $10,000 to her to cover moving costs, the pair still had to leave some valuable belongings behind. She estimates the public trustee has taken $100,000 from the estate in administration and legal fees and has no idea what new fees will be added as she went back and forth trying to negotiate the purchase of the Charleville home. 

She also said Munroe’s house was sold for more than $100,000 less than what it was appraised for, reducing the value of what she estimated was a $600,000 estate. In selling the property, the public trustee charged $8000 for undefined property maintenance, repairs, cleaning and inspections, nearly $9000 for selling fees and commission, and $998 for mowing services. 

‘We’ve been conned’

Hawting says that as Munroe became ill, he turned to the Queensland public trustee’s free will service. She says he was told the trustee would care for his family. 

“He was just conned,” she said. “We thought the trustee was a free government service.”

Across Australia, state public trustees represent more than 47,000 Australians and their $14.7 billion in assets. Last year they raked in $1.1 billion in asset management fees. In Queensland, the state has retained more than 60% of client funds’ earnings.  

The Queensland office has been accused of having a profit-driven agenda, with a “strategic plan” to deliver a surplus for reinvestment into business objectives. While it’s a statutory body, it’s not funded by the government, relying on earnings to stay afloat. 

Queensland charges some of the highest fees in the country, including $996.55 a year to manage each property. In 2019-20, nearly half of all clients were paying $6403 a year on personal financial administration fees, and those on the disability support pension paid 37% of their pension.

A spokesperson for the Queensland Public Trustee told Crikey that while they can’t comment on individual circumstances, the office “will always take steps to meet the immediate and long-term needs of customers, and will always take the available steps to support customers to live safely”.

“The Public Trustee always endeavours to work with customers to a preferred outcome but this is not always possible due to legislative requirements or the policies or requirements of external services,” the spokesperson said.

For legal reasons, please don’t identify yourself or others under guardianship or financial administration in the comments.