What Happens When the Assets Aren’t Clear?

Lessons from a $100 Million Estate Dispute in Sultana v Sultana & Anor [2026] NSWSC 1224

A recent decision of the Supreme Court of New South Wales highlights an important lesson for anyone planning their estate: your executor can only deal with what they know about.

For most people, estate planning starts with a Will. But for those with property, investments, businesses, trusts or loans to family members, a Will is only part of the picture.

The recent decision in Sultana v Sultana & Anor [2026] NSWSC 1224 (“Sultana”) provides two important, but expensive, examples of:

1. what can happen when an estate is substantial and complex, but the records and documentation are incomplete or inadequate for the executors to effectively do their job; and

2. that if an estate becomes too difficult to manage, there are ways to obtain additional professional and Court assistance.

Don’t leave your executors to be detectives

Anthony and Maria Sultana had built substantial wealth in their lifetime through property investment. Their combined estates were worth tens of millions of dollars, with the Court noting that they could potentially realise well over $100 million.

Their daughters were appointed executors. Following their deaths, however, the executors faced the difficult task of establishing exactly what their parents owned and how their various investments and business arrangements were structured.

The Court noted that Anthony and Maria had kept limited business records and generally managed their affairs themselves. As a result, assets continued to be discovered during the administration.

In Anthony’s estate, approximately $5.3 million was initially identified, followed by the discovery of a further $83.4 million in assets. In Maria’s estate, a further $21 million was subsequently identified beyond the assets disclosed for probate.

If you have property, shares, companies, trusts, investments or loans, make sure there is a clear record of them and that your executor knows where the relevant documents can be found. If you have advisors, leave details of those advisors, and make sure decisions and intentions are clearly documented.

The same applies to liabilities. One of the significant issues in Sultana concerned approximately $45 million in advances made by Anthony to entities associated with the Landen Property Group. The Court was concerned about the difficulty in establishing the position concerning those advances, including the documentation, amount owing and prospects of recovery.

If you have lent money, document it. If someone owes you money, document it. What is obvious to you today may not be obvious to your executor after your death.

Documentation matters

The case also demonstrates why important family, and financial arrangements, should be properly documented.

The Court considered, among other matters, the transfer of approximately $24.9 million from Maria’s estate to the MGS Trust. The evidence concerning the transaction was described as “strikingly informal”, raising questions about the authority for the transfer and the interests of the beneficiaries.

If money changes hands from one entity or person to another entity or person, is it a gift, a loan, an investment or a distribution? Who owns it? Who is entitled to it? What happens if someone dies? Is it repayable?

All these things are needed to be answered by your executors, because otherwise you may end up with a partially distributed estate. Let alone tax liabilities that may incur penalties if no knows about them.

What if the estate is already complicated and the executors struggle?

The Sultana decision demonstrates that executors do not necessarily have to manage every problem alone.

One of the sons of Maria and Anthony commenced proceedings to remove the two daughters as executors citing maladministration. The Court, having heard evidence relating to the assets, liabilities and the actions the executors were undertaking, the Court refused to remove them.

Instead, the Court adopted a safeguarding approach and appointed a special administrator for six months in relation to a particular aspect of the estate considered at risk of loss. The Court also made orders designed to improve transparency and protect the estates while the wider issues were addressed.

Complex estates sometimes require specialist legal, accounting, valuation, or commercial advice. In an appropriate case, the Court can also appoint an independent or special administrator to deal with a particular problem. The earlier a problem is identified, the more options there may be for dealing with it sensibly.

The value of specialist advice

The executors engaged lawyers for the overall administration of the estates and Francois FF Salama of 13 St James Hall Chambers as Counsel, whom the Court noted was experienced in probate and succession law.

Mr Salama appeared for the executors in the proceedings. The Court observed that once the executors had engaged their new legal representatives, including Counsel, their response to the proceedings and the Court’s orders was generally efficient in the difficult circumstances.

Before you need Counsel and put your executors in Court, engaging specialist lawyers, accountants and financial advisors can reduce the litigation risk. Good planning, clear documentation and early professional advice can help prevent problems from escalating.

To discuss your estate planning needs with one of our experienced Estates team please contact Solari and Stock on 8525 2700 or click here to request an appointment today.

Article by Sarah Khan
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