LEGACIES UNDER WILL

Dominion, Volume 33, Issue 2, 27 September 1939, Page 11

LEGACIES UNDER WILL

Effect Of Mortgage Judgment

COURT’S DECISION The effect of the intervention of the Court of Review on the disbursement of legacies under a will was the (Subject of a reserved judgment by Mr. Justice Blair in the Supreme Court, Wellington, yesterdfiy. The case was one in which John McKeivie, late of Upper Hutt, farmer, based his will on a mortgage of £l2io. Subsequent to his death the Court of Review reduced the amount of the mortgage to £794 and extended it for 15 years. When testator made his will it was due for repayment in 1936. Under the new arrangement made only half of the principal sum will have been repaid as_ at the end of the period of extension (1953). Plaintiffs were Mrs. Fanny Greccoand Mrs. Charlotte Qestro, .both of Wellington. daughters of testator. Defendants were testator’s sons, William Alfred McKeivie and Henry McKeivie and John McKeivie, an infant grandson of testator. The will provided that the income from the mortgage be paid to his widow, Kate McKeivie, till its repayment or her death, whichever happened first. Upon repayment £5OO was to be paid to- the widow and £lO4 each to the daughters, Mrs. Fanny Grecco, and Mrs. Charlotte Gestro, in weekly instalments of £l. The balance of the principal sum and interest was bequeathed to testator’s sons, the persons entitled to the residue in equal shares. It was provided that if any of the legatees die before payment of their, legacies, the unpaid portion should fall into -the residuary estate. The widow died in 1932. The mortgage was not repaid in 1936, when due, and by order of the Wellington Mortgage Adjustment Commission in 1938 it had been reduced to £794, the interest reduced to 4J per cent., and the time for payment extended to 1953. His Honour held that in the circumstances he must construe the repayment date of the mortgage to be the date on which normally it would have been repaid, but for the effect of later legislation. The two daughters were, therefore, entitled to their legacies in full. Details as to the method of payment were, outlined in the judgment. Costs were ordered to be borne between the plaintiffs and defendants on a basis fixed by the judge.