Bitterness between Ken Talbot’s children, widow destroys dying wish

A bitter rift is dividing the family of mining billionaire Ken Talbot and destroying the final wish that his widow and children from two marriages have not been able to make a reality.

Ken Talbot was one of Queensland’s richest businessmen before his death in 2010

Bitter infighting between mining billionaire Ken Talbot’s children has effectively destroyed his dying wish that a third of his fortune be dedicated to charity through a single family-run foundation.

The extent of the rift between Talbot’s widow and children from his two marriages has been laid bare in the Supreme Court after a judge ordered that two foundations be set up using proceeds from his estate because they “would not be able to work together as a group”.

Former Macarthur Coal managing director and CEO Ken Talbot died in a plane crash in 2010.

Talbot, one of Queensland’s richest businessmen before he died in a light plane crash in the Congo in 2010, clearly stated in his will: “I sincerely ask that all beneficiaries are sensible and do not argue. I particularly ask all beneficiaries to demonstrate and give and take”.

Instead, one foundation will be run by widow Amanda Talbot and her two daughters Claudia, 18, and Alexandra, 21, and the other is to be run by Talbot’s children from his first marriage, race-car driver Liam, 38, and Courtney, 35.

Justice John Bond was called in to make the ruling after Amanda, Claudia and Alexandra and their half-sister Courtney, submitted to the court that a single Talbot Foundation would be unworkable due to past and “likely future” conflict, disputes and “differences”.

Justice Bond ruled last week that even though a “two-foundation model would be inconsistent with” Talbot’s “intention for a single foundation” the evidence supported the conclusion that the four kids and Amanda Talbot “would not be able to work together as a group”.

Amanda, Alexandra and Claudia said they could not work with Liam and Courtney, and Courtney said she could not work with Amanda, Alexandra and Claudia but she could work with Liam, the court heard.

Liam unsuccessfully argued in court that a single foundation should be set up and should have an independent board, ensuring the heirs did not have direct control over the appointments to the board.

Courtney Talbot

Liam Talbot.

One foundation will manage 60 per cent of the funds, while the other will manage the remaining 40 per cent of the allocated funds.

A sum of $36 million from the estate has already been set aside for the foundations, and will be topped up monthly at the same time that the five beneficiaries received their distributions from the estate, the court heard.

The administration of Talbot’s estate has been dragging on for more than a decade and has been bogged down by legal fights raised by Mrs Talbot and her daughters, mostly over the glacial pace of the administration of the estate, and reporting and disclosure of information to beneficiaries.

In an earlier case Mrs Talbot sought to have lawyer Bill Boyd removed as the administrator of Talbot’s estate and claims over alleged legal negligence related to the fact that Mr Boyd had been in the process of having Talbot update his will prior to his death.

Amanda Talbot has also previously stated in interviews that she believed her husband wanted his estate to be settled within two years of his death.

When Mr Talbot died aged 59 in a plane crash en route to inspect a mine site in the Congo on June 19, 2010 he was awaiting trial on charges relating to paying disgraced politician Gordon Nuttall secret commissions totalling $300,000 starting in 2002.

Nuttall was jailed for corruption in 2009.

Talbot, a truck driver’s son, died alongside the entire board of the Western Australian mining company Sundance Resources.

In 2010 his estate was worth about $1.1 billion but previous court hearings have been told its value has slumped due to delays in selling his investments in speculative international mining companies including Mozambique coal assets and shares in illiquid mining companies.

Talbot was the founder of Macarthur Coal and he made his fortune selling out for $860 million in April 2008.

The wife and children (left) of Ken Talbot stand outside St Johns cathedral, as the mining magnate is taken away following his funeral in Brisbane, Wednesday, July 14, 2010. Mr Talbot was travelling with a team of Sundance executives when their chartered plane crashed in thick jungle in west Africa last month. (AAP Image/Dave Hunt) NO ARCHIVING

His estate also includes a $12 million villa in Italy’s Lake Como and an $8.5 million prime riverfront home in Brisbane’s Bulimba, and an apartment in the ritzy 8th arrondissement of Paris, near the Arc de Triomphe.

Daughter Claudia was staying in the apartment with her mother and older sister Alexandra when news broke of her father’s death in a plane crash.

Other assets amassed before Talbot’s death, and identified in court documents, include an apartment in Shanghai, China purchased for $5.3m in 2006 and a Learjet bought for $50m.

Talbot left 30 per cent of his wealth to the charitable foundation, and Liam and Courtney were each due to receive 24 per cent, with the remainder divided between Mrs Talbot and her two daughters.

Talbot stated that he would like the charitable foundation to make donations to a maximum of $1m per year, with each of his beneficiaries having responsibility for allocating $200,000 per year.

Ken Talbot’s widow Amanda attending a charity event. File picture

He stipulated that all the beneficiaries meet every six months to discuss and co-ordinate the donations to be made and asked they all prioritise donating to charities and community projects where most money is used “at the coal face” and are not diluted by management fees.

The names of the two foundations have not yet been decided, but are likely to be made later this year, the court heard.

According to his 2002 will filed in court, Talbot wanted his trustee to hold a formal reading of his will at his Paris apartment to be attended by beneficiaries.

He stated that while his widow could get her interest in his estate immediately his children should wait until they are 30 to receive 10 per cent, then 36 years of age, or ten years after his death to inherit the balance.

He split his extensive wine collection in equal 20 per cent slices to his beneficiaries and stated that Courtney should get his three metre punt boat and Liam to receive “all other boats, jet skis and associated trailers”.

He asked that the Paris apartment be kept in the family forever and that his trustee give business class airfares to his widow and children, and their children, to visit every three years.

He stipulated that the estate pay for his children to have top level health cover, and annual health checks once aged over 30 and to pay for his kids weddings, and a three-week honeymoon “anywhere in the world” with first class air travel and $20,000 spending money.

He also asked his children to complete a course in company management at the Australian Institute of Company Directors between the ages of 30 and 35, his will states.

The case is due to return to court on June 18.