PUBLIC TRUST OFFICE

Ashburton Guardian, Volume 51, Issue 135, 20 March 1931, Page 2

PUBLIC TRUST OFFICE

CRITICISM BY JUDGE. FREE ADVICE ON WILLS. (Per Press Association). WELLINGTON, March 19. “The Public Trustee advertises that he is prepared to make wilts gratuitously where he is appointed executor. Such an advertisement can create a false, impression in the minds of ignorant people because the advertisement does not make it plain that the Public Trustee obtains his remuneration for such so-called gratuitous service from the commission he is paid for the administration of the estate,” said Mr .Justice Blair, in delivering a reserved judgment in the Supreme Court to-day. “ I have little doubt that solicitors would undertake to prepare wills gratuitously upon the same condition and rely for their remuneration for preparing the will upon the commission to which the executors are entitled under Section ‘2O of the Administration Act,” said his Honor. “Once the Public Trustee is appointed executor, he alone, within the wide limits provided by the regulations, is the judge as to the amount he is entitled to charge the estate for commission. In the case of an ordinary executor, the only commission he. can obtain is what the Court allows him for his pains and trouble.

“ 1 have been informed by the solicitor for the Public Trust Office that in all cases the Public Trustee, in fixing the commission he charges in any estate, takes into consideration the extent of the work involved in administration and does not always charge the full scale rates authorised by the regulations to the Public Trust Office Act. It is satisfactory to know that this is so, but, nevertheless, the fact that the Public Trust Office, for the purpose of attracting business, advertises that it will gratuitously advise persons as to the making of wills, places the office in a position that it has a substantial financial interest in giving such advice and obtaining execution of such wills. This financial interest conflicts with its fiduciary duty to testators asking for advice.”