BEQUEST OPPOSED

Auckland Star, Volume LXXV, Issue 153, 30 June 1944, Page 6

BEQUEST OPPOSED

ACTION BY THE STATE

A DAUGHTER'S MAINTENANCE

A bequest by the late Mr. Frederick Wood, settler, Rangiriri, of the whole cf his estate, of a net value of £2000, to Dr. Barnardo's Homes, London, was called in question by an action argued before Mr. Justice Callan to-day, when the SolicitorGeneral (Mr, G. S. R. Meredith) contested a settlement by the parties whereby testator's sole dependent, Miss Alice Wood, of Wellington, a daughter, was allowed £52 .a year from the estate. Mr. Warnock appeared for Miss Wood, Mr. Fortune for the trustees (Mrs. Eleanor Ann Leighton and Mrs. Eleanor Gwendoline Leighton), and Mr. McArthur for Dr. Barnardo's Homes. His He nor said a settlement had been reached and a consent order was made by Mr. Justice Fair, who had directed that the case be brought under the notice of the Solicitor-General. The present position, explained Mr. Meredith, was that he had been instructed by the Solicitor-General to ask that the Social Security Fund be exonerated entirely from having to make any contribution towards the upkeep of Miss Wood. She was 07 years of age and received £136 10/' annually under social security. She appeared satisfied to receive that. Under the settlement order she was to receive £52 from her father's estate and the balance from social security. Counsel submitted that the Court would always uphold the principle that a testator must provide for his dependents before he was generous to outsiders or charities. He submitted that a proper order in this case was that an income from the estate should be paid to Miss Wood for her maintenance ! during her lifetime, with resource to capital if necessaiT to bring the net income up to £136 10/. Such order would increase the net balance of the estate by £355 saved in net duty. His Honor commented that this would protect the Social Security Fund by diminishing the Consolidated Fund. Mr. Warnock said that if the order on the estate was increased from | £52 to £13G 10/ Miss Wood would! have to- pay social security and national security. He felt the allowance should be made £148 10/ to! meet that. Mr. Fortune said the trustees left j the matter to the Court. Mr McArthur said it was Dr. Bar-; nardo's Homes who had brought under Miss Wood's notice the fact of her possible interest in the estate. Because they had made an offer to take some of the burden of her maintenance, the State wanted to throw the whole burden on them. The State already had a slice j amounting to 36 per cent in estate duty. His Honor reserved his decision.