Aust neighbours win battle of wills

Neighbours who helped a lonely elderly lady care for her large property have won access to her $A15 ($NZ19) million estate.

For loving thy neighbour, three families have each been awarded $A5 million from the will of Mount Martha woman Betty Dyke, who died in 2004, aged 84.

Denise Knaggs, Robert and Sandra Allen, and Gary and Diane Smith had cared for the property of Ms Dyke, an only child who had no children of her own, and her animals as her health deteriorated.

On Friday, they won a long and bitter battle in the Victorian Supreme Court with Ms Dyke's second cousin Julie Ann Nicholson, who challenged Ms Dyke's two most recent wills on the grounds of her poor health when she made the documents.

Ms Nicholson was among a group of people, including several charities, who were beneficiaries of a previous will written in 1985.

Ms Dyke had left her fortune, which included the 17ha Mount Martha property Sefton Grange, to her neighbours in wills written in 1999 and 2001.

On Friday, Justice Peter Vickery ruled the will written in 1999 should stand, except for her decision to award money to Tim Knaggs.

Justice Vickery found Mr Knaggs had exerted undue influence on Ms Dyke and that Mrs Knaggs was entitled to the entire $A5 million on her own.

"This was contrary to all of the instructions which Betty had given to her solicitor of the 1999 will over the previous six weeks," Justice Vickery wrote in his summary judgment.

"It was also inconsistent with her long-held dislike of him."

Mr and Mrs Knaggs are still married.

Giving instructions in her 1999 will, Ms Dyke described the Allens and the Smiths as very important to her.

"They are my best friends - they look after me and my property and animals," she said.

Disputing the will, Ms Nicholson argued that Ms Dyke, who suffered dementia and was on painkillers, lacked the capacity to give proper instructions.

Justice Vickery rejected the argument.

"She did have testamentary capacity and she did approve of, and have the required knowledge of, the contents of these documents," he said.

Justice Vickery reserved his decision on costs.