Perpetual Trustee v Baker

The New South Wales Court of Appeal considered an appeal concerning the testamentary capacity of the deceased, Mary Victoria Tompson. The appellant, Perpetual Trustee Company Limited, sought to admit the deceased's last will and testament dated 19 August 1993 to probate in solemn form, against the opposition of the respondent.

The central legal issue before the Court was whether the deceased possessed the necessary testamentary capacity at the time of executing her will, specifically whether a delusional belief held by the deceased regarding claims on her bounty rendered her incapable of making a valid will, notwithstanding apparent intelligence. The Court was required to distinguish between a delusional belief and a mistaken belief in this context.

The Court, by majority, found that the deceased did possess the requisite testamentary capacity. It reasoned that while the deceased held a belief that was not based on fact, this belief did not amount to a delusion in the legal sense that would prevent her from understanding the nature and effect of her will or the extent of her property and the claims of potential beneficiaries. The Court distinguished this from a mistaken belief, which does not necessarily vitiate testamentary capacity. Consequently, the appeal was upheld, and the previous order of Bennett AJ was set aside. The Court ordered that probate of the 1993 will be granted to the appellant. Furthermore, the Court ordered that the costs of both the trial and the appeal, for both the appellant and the respondent, be paid out of the deceased's estate, with the appellant's costs on a trustee basis.