PROPERTY IN TRUST.

Auckland Star, Volume XLVI, Issue 70, 23 March 1915, Page 6

PROPERTY IN TRUST.

GUARDED BY THE LAW. TO PROTECT INFANTS' INTERESTS. AN IMPORTANT PRONOUNCEMENT. Mr. Justice Hosking made an interesting pronouncement this morning regarding the application that was submitted to him yesterday for leave to sell trust property. Tile land in question was «oG acred at Whangarata, the tenant for life being Francis Potter, the farm having been purchased with the proceeds of property left to him under the will of the late William Potter. Mr. A. E. Skeltnn represented the tenant for life, Mr. R. 1.. ..iman the trustees, and Mr. K. Hrookfield the infant daughter of the tenant for life. 'This is a xßiy special ease," said his Honor. "The land which it is sought to sell was. with the leave of the Court, purchased by the trustees with some COOOO arising from the s»le of Jand originally subject to the settlement. It was let to the tenant for life for farming purposes. His operations have not been successful, and the land has jjone back in condition. It. is kadly infested with blackberries, and rabbits' are numerous. Anyone desirous of properly farming the property would require to expend considerable sums of money in bringing the land back into condition, and in making the best of the swampy portion of it. On the previous application for an exchange, it was valued at slightly over t.").500, and the tenant for life was prepared to sell for a sum of ir>,Bt>:t, or to exchange on the basis of that value for another property. The exchange was not sanctioned.

"Suvce then, a conditional agreement has been f »tered into for the purchase of the pr» |erty for £7,300, payable on Ist July, I*2), or a little more than live years heurce. He intends himself to farm and manage the land, and binds himself to keep the buildings repaired and ineured, the drains cleaned and to keep down noxious weeds and rabbits, also in each year to put on substantial improvements of the ml tie of £-200.

"A sale of the property is desirable from the point of view not only of the tenant for life, but of the trust itsolf, and is the best means of preventing further deterioration. Indeed, the case may be put more strongly as a sale which is essential for the preservation of the Trust Estate. The affidavits arc very full and strong on this point." "The affidavits also give a most full and satisfactory account of the propoeed purchasers rapacity and success as a farmer, who has dealt with somewhat similar land, especially as regards swamp. They also show that he is s man of means, with over i.'0,000 invested and well able financially to carry out hU agreement. He gives the price of C7,."!00 in order to get the terms proposed. The consent of the Court should be given ir it is competent for the Court to give it. As the sale is not for «ash, but on credit, the question is raised whether th e Court has that power, that is to suy, whether ,i sale by the tenant for life under the 4<ith Section of The Settled Land Act," to which the Court may consent, must be n sale for cash, or whether the sale may be one on terms.

"In the Caroline Bell estate the Chief Justice considered the question under the terms of purchase. In that case it was possible the purchase money might not be paid in full for 21 years. The sale was very advantageous, and was not of land originally settled, but which had been purchased by the Trustees. The Court made an order consenting. This decision did not follow the Queensland case of "In re Boyd's Trust," cited in it where the Court refused its consent on the ground that the sale must be for ready money. This application has been made on the strength of the decision of our own Court, and I follow it. But for that authority 1 confess 1 should have had some difficulty, but it may be observed that the sale proposed is "substantially equivalent to a lease for five years, with a compulsory purchasing clause, and the Court has full power under Section S of Part 1. of the Settled Land Act to sanction suoh a lease. This. I think, helps to fortify the view that a sole by the tenant for life need not necessarily be for ready monf>v.

"The consent of the Court is therefore given to the sale in this oase. I notice that the agreement provides that tfie sale is to be completed by transfer and mortgage if the Supreme Court should require the purchase money to be secured by mortgage for the purposes of this provision. The Court does require the purchase money to be so secured."

It was ordered that the costs of all parties be taxed by the Registrar, and paid out of the trust estate, trustees' costs, charges, and expenses to have priority.