18 Oct 2011

Heiress loses guardianship case

2:56 pm on 18 October 2011

The wealthiest woman in France, Liliane Bettencourt, has lost a legal battle over her mental health.

A court in Paris granted her daughter's request that Mrs Bettencourt, 88, be placed under the guardianship of her family members, on the grounds she is no longer mentally fit to manage the family wealth.

She is the heiress to L'Oreal. Her fortune is estimated at 16 billion euros ($US20 billion) by Forbes magazine.

The BBC reports Mrs Bettencourt is estranged from her daughter, Francoise Bettencourt-Meyers, who, along with two grandsons, will now control her wealth and property.

Another grandson was named as her personal guardian.

Mrs Bettencourt-Meyers has long said her mother was squandering her money under the influence of flatterers and favour-seekers.

Last December Mrs Bettencourt and her daughter announced they had been reconciled, ending a series of lawsuits.

However, the spat reignited over the summer when Mrs Bettencourt said her daughter needed to seek psychological help.

On Monday, the website of Le Monde quoted a medical report prepared for the court as saying that Mrs Bettencourt has ''mixed dementia'' and ''moderately severe'' Alzheimer's disease.

The BBC reports the court's decision is expected to have little impact on the running of L'Oreal, a giant cosmetics group.