DECEASED ESTATES

Greymouth Evening Star, 13 August 1932, Page 5

DECEASED ESTATES

EFFECT OF RECENT CONDITIONS.’

The depression has been held responsible for most of thq ills from which the country is at present suffering, but one problem wfiiefi has arisen as the result of the economic blizzard has probably not beep considered by the average person. In the course of conversation witli an Daily Times’- reporter, a welLkpown legal authority referred to the difficulties which were being at the present time in the making ancl administration of wills. As an instance of this, the case was quoted Qf a farmer who a few years, ago had valued his estate at £50,000. He had guaranteed the accounts of several relatives, also farmers, thinking at the time that the soundness of his financial position was unassailable. With the disastrous fall in the prices of primary produce, however, he discovered that his own obligations and those of his relatives, for which he had made himself responsible, had accumulated to such an. extent that his estate at the present time was worth no more than £ 5000. The result was that the-farmer in question, whose will had provided for several legacies and bequests, had now to re-make it, leaving the whole of his estate to his wife, in order that she might be at least reasonably provided for. There was the case also of residue ary legatees, who in wills made several years ago were to receive the balance of an estate after provision had been made for annuities and bequests. These latter might at the time have affected but a small proportion of the value of the estate, the residuary legatee being the person for whom the testator desired particularly to provide. With the fall in prices it was pointed out, the value of estates had decreased to such an extent that after the fixed charges had been accounted for the residuary legatee would receive practically nothing. Thus the intention of the testator had been defeated. The result was that a ; great deal of hardship was being experienced at the present time among legatees, who a few years ago had been adequately, and even handsomely, provided for. In other instances, sums of money which had been set aside to provide an annuity of, say, £2OO per year, were proving, with reduced earning power of investments, quite inadequate, for the purpose, and the people concerned, were finding that their incomes were being reduced to an alarming extent. Relief could be obtained in certain cases under the National Expenditure Adjustment Act and the Family Protection Act, but as a general rule the hardship involved was the result of economic conditions for which there was no remedy. It was stated that- in cases where churches and social organisations,' but .especially churches, were benefiting by bequests, the payment of which was drawing from an estate a far larger portion of the income than was intended by the testator, adjustments were being made in a very generous spirit in order that the residuary, legatee should not suffer unduly. It was predicted that one result of the present experience would be that during the next few years religious and charitable organisations would receive considerably less by way of bequests than formerly. Large numbers of people, hearing of the distress which was being created -by rigid provisions for certain bequests when the value of the estate had so seriously decreased, had redrawn their wills, and this time had bequeathed the whole of their property to their dependents, rather than run the risk of some unforeseen set of circumstances causing a similar state of affairs in the administration of their own estates. It was possible that ' with the return of more prosperous times some of these wills would again be altered, but in the meantime it appeared as if a very considerable amount had been lost to the social organisations of the country.