When Probate Disputes Drain an Estate
Family disputes over wills are unfortunately all too common. A recent Supreme Court decision in The Estate of Gaber Ekladious Awad; The Estate of Ognee Abd Elkodious Mikheil [2025] NSWSC 1346 shows how a dispute can quickly erode the value of an estate. The case also highlights when the Court may refuse to grant pro bono legal assistance in probate litigation.
A Family Divided Over Competing Wills
Gaber Awad and his wife, Ognee Mikheil, passed away leaving four adult children. After their deaths, two estates became the subject of intense in-family litigation. The siblings disagreed about which of two competing wills should be admitted to probate and who should ultimately inherit the family home in Blacktown—the main estate asset.
The daughter Nahed sought to prove a 2022 will, under which she would receive the entire estate. Another sibling, Marciel, who lives in Egypt, said their father gave her a 2019 will in which the Blacktown property would be divided equally between all four children. Two brothers, Emad and Regaie, filed caveats with the Court preventing probate being granted alleging the 2022 will was invalid or made under undue influence.
With the parties deeply divided, the matter came before the Probate List Judge for case management.
A Financial Crisis Unfolding in the Background
While the siblings were fighting over the wills, something critical was happening in the background:
the equity in the estate’s main asset was rapidly diminishing.
The Blacktown property was heavily mortgaged. Because no repayments were made during the dispute, the loans fell into default, and interest began to compound at 11.5%, adding more than $3,000 per month to the debt.
By June 2025, the total mortgage liability had grown to over $303,000, and it continued to rise. Yet the siblings repeatedly told the Court the mortgage balance was only around $20,000—information that turned out to be completely wrong once the lender’s statements were produced.
Because of this, the Court found that:
- the estate was in a financially dangerous position,
- the parties were not addressing the urgent problem, and
- the ongoing dispute was creating real economic harm.
The Court noted that renting out the home would not even cover the ongoing default interest unless one of the parties contributed significant funds—which they could not.
Applications for Pro Bono Assistance Refused
Both Nahed and Emad asked the Court to refer them for pro bono legal assistance under UCPR r 7.36. Normally, this rule allows the Court to recommend a lawyer or barrister to assist litigants who genuinely cannot afford legal representation.
However, Justice Slattery refused the request.
The Court found:
- pro bono resources are limited and must be reserved for genuine cases of need
- the parties appeared capable of representing themselves
- there were doubts about the accuracy of their stated financial circumstances
- the estate itself had value (potentially $600,000–$900,000 if properly managed)
- pro bono assistance would not fix the real problem, which was the deteriorating financial position of the estate.
Instead of a pro bono referral, the Court recommended that the Registrar send the judgment to the Bar Association and Law Society to see if any lawyers might act on a reduced-fee or deferred-fee basis.
Independent Administrator May Be Appointed
Because of the escalating conflict and the siblings’ failure to protect the estate, Justice Slattery ordered all parties to show cause why an independent administrator should not be appointed.
An independent administrator would step in, take control of the estate, and make decisions to prevent further financial harm—such as selling the property or arranging mediation.
The case highlights the Court’s strong preference to protect estate assets and ensure the probate process is not derailed by personal conflict.
How We Can Help
Disputes over wills and estates can be stressful, emotional, and financially risky—especially when valuable estate assets are involved.
Our experienced Wills & Estates team can help you:
- challenge or defend a will
- navigate probate or letters of administration
- resolve family disputes
- protect estate assets from being wasted
- seek the appointment of an independent administrator when needed
If you’re dealing with a contested estate, get in touch with us early. The right advice can prevent problems from escalating.
DISCLAIMER
This article reflects the current law at the time of publication. It is intended for informational purposes only and does not constitute legal advice. The actual decisions in each case are summarised for general understanding. For specific legal guidance in relation to your situation, please consult with a qualified legal professional.