The State Administrative Tribunal found the couple were victims of "questionable transactions" and appointed the Public Trustee as administrator.
In March, one of the sons had helped his father, 87, sell the couple's farm in Wyening, but later transferred the $1.6 million to his own account and then split the proceeds with his brothers.
He also took a personal commission of $50,000, and transferred a further $244,000, of which he later returned $200,000.
The sons also sought to have their parents' Mullaloo home gifted to themselves, even though the tribunal had found their mother, 81, "lacked the legal capacity required" to agree to it.
The sons did not make the solicitor involved aware that their mother had an independent guardian, or that there were ongoing proceedings.
Two of the sons used their parents' funds to pay their own legal fees, and the parents also covered the cost of renovations and repairs to the Mullaloo home, even though ownership had been transferred.
The tribunal also referred to "very large cash withdrawals" from ATMs, and noted the couple had given one son $3,000 for rent and groceries.
Granddaughter steps in to demand independent guardian
It was during April that the "questionable transactions" occurred, amidst a climate of family acrimony.
A granddaughter of the couple had sought an independent administrator for her grandmother on April 10, fearing she was at risk.
She said her grandmother was suffering from dementia, had lost weight, missed family events and medical appointments, and had her landline disconnected while family members' numbers were blocked on her mobile.
Two days later, a confrontation erupted between her, and her father and his nephew, which resulted in police charging the nephew with assault.
The granddaughter had her grandparents admitted to hospital on April 13, and she shared her concerns with a family doctor.
The same day, the $1.6 million proceeds from the sale of the farm was transferred out of her grandparents joint account.
Then on April 19, one son asked the tribunal for he and his brother to be appointed as guardian and administrator for their parents, arguing his father was "vulnerable to financial exploitation by his grandchildren" and was being held "against his will in hospital".
On April 20, the elderly couple were discharged from hospital against medical advice after one of the sons went there under a false name.
The gifting of the Mullaloo home occurred in May.
The tribunal said it did not accept the claims that the sons were making about the grandchildren.
It ordered that the Public Trustee lodge a caveat over the Mullaloo residence, and consider an injunction preventing the sons from dealing with the funds associated with the farm.
It ordered investigations be undertaken regarding other amounts.
The tribunal ruled an administrator be appointed for the grandfather and grandmother, and the Public Advocate appointed with his limited guardianship for the grandmother.
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Elderly parents' estate drained after three sons sell farm, 'gift' family home
What a mess. Sometimes I wonder though if the children in these cases are taking the money out of their parents' names and putting it in their own to protect it for care expenses.
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