FAMILY FUNDS.

Auckland Star, Volume LIX, Issue 276, 21 November 1928, Page 8

FAMILY FUNDS.

QUESTION OF DISPOSAL

KNOTTY LEGAL POINT.

BAY OF ISLANDS PROPERTY.

Four counsel were engaged in arguing a question which affected the interpretation of a will, before Mr. Justice Blair, at the Supreme Court this morning. The point involved was the effect of the doctrine of ademption upon a legacy. A testatrix, by her will, left property at the Bay of Islands to her trustees with a direction that it was to be sold, and out of the proceeds a specified sum was to be paid to a foster daughter, and the balance was to go to the trustees of St. John's College for scholarship purposes.

In her lifetime the testatrix sold the property for £800, receiving £150 hi cash, the balance remaining on mortgage. She paid the sum of £150 into her savings bank account, and when she died, four years after making the will, the account had a credit of £90. The question at issue was whether, under the circumstances, the sale of the property nullified the claims of the legatees.