SHARES BEQUEST

Hokitika Guardian, 26 August 1938, Page 2

SHARES BEQUEST

CLAIM AGAINST PUBLIC TRUSTEE

CHRISTCHURCH, August 25

Payment of dividends from 697 £1 shares in the Canterbury Saleyards Company, claimed to have accrued to him since the shares were bequeathed to him in 192.4, was sought in the Supreme Court yesterday by Alick Feather, labourer, of. Dunedin, in an action against the Public Trustee, Christchurch. Plaintiff’s counsel submitted that there had been a breach of trust, as the money had already been paid out by the Public Trustee, but in plaintiff’s view to the wrong persons.

His Honour, Mr Justice Northcroft presided. Mr E. E. England, with hiir Mr K. J. McMcnamin, appeared foi plaintiff, and Mr K. M. Gresson lor defendant.

Mr England said that plaintiff, as the grand-nephew of Alice Feather, who died in 1923, had an interest in her estate of 696 £1 fully paid shares in ®he Canterbury Saleyards Company. The legacy was to pass to plaintiff’s own use at the age of 21. The question was the destination of dividends, from the shares during the minority of plaintiff, and whether the dividends j should be accumulated for him or p ud to other legatees. The Public Trustee , had made from the dividends regular payments for the maintenance of the j plaintiff, but in 1933 these bad been i discontinued. The money' was then I transferred to three other legatees. . Counsel claimed that the will did not provide for such a residuary payment; and that the shares were fully vested in the plaintiff from the death of the testatrix, with enjoyment postponed; in which case the legacy auto'matically carried all'accretions of income. Mr Gresson said, and brought authorities to demonstrate, that the mere making of a specific bequest did not necessarily set apart the bequest from the residue of the estate. The legacy did not carry “intermediate income” (interest .or other accretions) unless it was directed in the will to be set apart. The legacy in the present case jvas contingent on the plaintiff attaining the age of 21; and any income added before that contingency fell into the residue of the estate. His Honour remarked that he feared that the testatrix would be shocked if she,could know the conclusion he might be compelled to reach. It appeared 1 from the will that the testatrix intended the shares to be entirely , the property of the plaintiff; but the judgment was governed by authorities. After a brief address by Mr McMenamin his Honour announced that he would take time to consider his decision.