Gina Rinehart's children

Three of Gina Rinehart’s four children have accused their mother of deliberately over-riding their grand-father’s wishes by changing the date of their inheritance. Before he died, Lang Hancock drew up a trust for his four grand-children and ordered it to be made available in September 2011, the day the youngest, Ginia, turned 25. But their mother changed the date to 2068 without their consent.


On 3rd September, Gina worte to her children pointing out that they would be bankrupted by a huge capital gains tax liability of up to $100 million each, and suggested they cede control of the fund to her. And that’s when the fight started. Furious, they not only want the release date changed back but insist that Rinehart be removed as head of the trust, alleging serious misconduct.


John Hancock, Bianca Rinehart and Hope Rinehart Welker began legal action in September and allege their mother threatened them with bankruptcy if they did not extend the date of her control over the trust. And it gets worse, there is a suggestion of blackmail when Bianca Rinehart announced that a chief financial officer of Hancock Prospecting told her that if she withdrew legal action, her mother would pay her a “quarterly distribution” and asked her to suggest an amount.

Gina and her father Lang Hancock

Rinehart’s youngest daughter Ginia is the only child to support her mother and described the case as "nothing but a destructive display of greed, jealousy and a selfish sense of entitlement on behalf of my siblings".


Mrs Rinehart wrote "Bankruptcy is not in the financial interests of the beneficiaries. It may however be reasonably arguable that personal development-wise, it would be in the best interests of the beneficiaries to force them to go to work and reconsider their holidaying lifestyles and attitudes.” She also thought her children to be "manifestly unsuitable" for the task of managing the fund, and suggested it would be in the "best interests of the beneficiaries to force them to go to work".


The allegations of fraud could have serious ramifications for Ms Rinehart who is a respected board member of many companies. But there’s another important reason for Ms Rinehart to remain in control, this particular trust – the Hope Margaret Trust - owns a 23.5 per cent stake of the Hancock Prospecting iron ore empire.


Hancock Prospecting is expected to shortly unveil a deal with the Federal Government which will allow them to import up to 1500 foreign workers for the Western Australian project, which is expected to start production at the end of 2014.