TRUSTEES SEEK DIRECTION

Press, Volume LXXI, Issue 21584, 21 September 1935, Page 7

TRUSTEES SEEK DIRECTION

*-7—" ADMINISTRATION OF WILL JUDGE RESERVES DECISION ,A direction from the court as to whether the trustees of an estate had the right to resort to capital to make up the amount of an annuity to the widow under a will was sought in the Supreme Court yesterday. The plaintiffs were the trustees of the will of William Morrish. of Christehureh, Elizabeth Morrish, widow, and William John Nicholson, also of Christchurcn. ,r, he defendants were the beneficiaries under the will, Elizabeth Morrish appearing both as a plaintiff and a defendant. .. Mr Justice Northcroft was on the Bench. Mr R. J. Loughnan appeared for the plaintiffs, Mr L. J. Hensley for the defendants, and Mr W. J. Sim for Elizabeth Morrish. Mr Loughnan said that the trustees brought the parties to court to determine whether the widow's annuity should be a continuing charge on the income or whether resort should be made to capital. The will provided that the widow should have a life interest in a house during widowhood, an annuity of £4 a week out of income from investments. The trustees were given discretionary ; power to pay £SO a year to F. W. Morrish. Subject to certain provisions the children of the testator were to take the remaining income, and on tha dropping of annuities, capital. Normally, said Mr' Loughnali;-■ the income from the estate v;as. £450 a year, an ample sum for the payment of annuities and leaving some income for. the children. In the last two years the income had shrunk to £93. The court was asked to decide whether the trustees might resort to capital to augment the widow's annuity to bring it up to the amount named in the will. , , , Mr Sim said that a long and elaborate question of law was involved. Mr Sim contended that the trustees had a right to resort to capital to secure the amount of the annuity. Mr Hensley opposed this view, arguing that the wiil made the annuity neither a charge on the corpus, nor a continuing charge, but simply a charge on income. After hearing long legal argument his Honour reserved judgment,