PUBLIC TRUST

Northern Advocate, 19 August 1929, Page 3

PUBLIC TRUST

CHARGES REDUCED

IMPORT AXT CONCESSIONS.

Thu Prime Minister (the Right Hon. Sir Joseph Ward) announces that important reductions in the charges made for legal and administration work performed in the Public Trust Office will take effect as from the Ist July, 1929. “The work of the office," said Sir Joseph, “lias shown a remarkable expansion in recent years, as the following figures demonstrate: —In 1914 the value of estates under administration totalled £.12,282,883; in .1919, £.1.9,242,347; in 1924, £32,404,724; and 1929, £48,334,790.

“On the 31st March, 1929, the business exceeded £48,000,000, representing almost a fourfold increase in the last fifteen years. “As a result, of the economies which have been introduced and the very gratifying increase in business, it is now fov.ud possible to grant further valuable concessions to clients and beneficiaries of the office, and it is proposed to bring into effect a new scale of charges for the preparation by the Public Trustee of mortgage documents in connection with loans granted from the Common Fund of the Public Trust Office, or from individual estates or funds under the Public Trustee’s administration, and to make important concessions in the administration of eases arising under the Workers’ Compensation Act. “A perusal of the new scale for the preparation of mortgage documents will show that valuable concessions are granted to borrowers e£ all classes, and that specially-reduced fees have been fixed in the case of loans not exceeding £2OOO, this being an amount sufficient to meet the normal needs of dwellers, in the towns who desire to erect homes, or small farmers who re- • quire' finance on their rural securities at reasonable rates. It is strongly felt that the maximum benefit of reduction should be enjoyed by those dosses in the community who are least able to afford payment of expensive fees. ; THE NEW SCALE. “The. following statement affords a comparison of the new scale of charges adopted by the Public Trust Office and the charges authorised under the scale approved by the New Zealand Law Society: Amount of Loan. —Up to £IOO, 50 per cent, reduction on charges authorised by New Zealand Law Society's scale;, over £IOO up to £SOO, 45 pet cent; over £SOO up to £IOOO, 40 pei cent; over £.IOOO up to £2OOO, 35 pei Cent; exceeding £2OOO, 33 1-3 per cent.

“Section 100 of the Public Trust Office Amendment Act, 1921-22, makes it illegal for any person to charge a procuration fee in obtaining a loan from the Public Trust Office. “The benefit of the reductions will also be enjoyed by borrowers from individual estates and superannuation funds under administration by the Public Trustee.

“The reductions -will ,be greatly appreciated ,by those persons who find it necessary to • raise loans on town or country properties, particularly those classes whose financial needs are mod' crate in amount and who have hitherto felt the burden of heavy legal charges in arranging their finance. The preparation of the documents will be undertaken by the professional staff of the Public Trust Office, and in view of the large amount of legal work transacted by the office, the charges mads, though moderate in amount, will be sufficient t'o remunerate the office for the work done.

“ Another important class of work in which concessions will be made to persons deserving of consideration is that relating to workers’ compensation cases. As is well known, the Public Trustee is frequently called on to administer moneys received under the Workers’ Compensation Act, and at present where such moneys are hold for administration in terms of any Court order they are subject to a charge by way of commission at the rate of 2\ per cent., but as from the Ist July next the charge will be induced to 1 per cent.

“In connection with workers’ compensation cases, the Public Trustee has frequently to purchase a house ou behalf of the widow and. children of a deceased worker, taking a mortgage back front the widow to secure the, amount advanced, which is gradually liquidated by payments made foi the maintenance of the dependants. In future no charge whatever will be made for the preparation of the necessary deeds, to give effect to such transactions, the whole cost being covered by the small charge of 1 per cent, made for the general administration of the compensation moneys.

“Apart from those cases where moneys under the Workers’ Coniponsatiou Act are administered for the benefit. of dependants, the Public Trustee is called upon to administer numbers of small estates where the beneficiaries are left in unfortunate financial circumstances. 'The minimum fee charged for the administration of such estates has hitherto been the sum of £3 3s, but it has now been decided that this foe shall bo reduced to £2 2s, the benefit of the reduction being made available, to those who participate in the distribution of the estates. PREPARATION OF WILLS. “It has been the settled policy of the Public Trust Office to grant concessions to its clients and beneficiaries as the financial position of the office made such concessions possible. In recent years the rates of commissio i charged on both capital and interest in estates have been reduced, and many classes of fees charged by the Public Trustee for special services,

such as the obtaining of grants of administration, the preparation and filing of stamp accounts, the supervision of repairs to properties, the settlement of mortgages, the registering of the Public Trustee’s title to property, the preparation of conditions of sale, and in most eases the charges made for -the inspection of rural properties by the office farm inspectors have been abolished. At the same time, the rates of interest allowed on moneys held in the Common Eund have been increased, and the interest has been calculated on a more liberal basis. The Public Trustee lias for many years past prepared free of charge all wills in which he is appointed executor. As it has been suggested in some quarters that the Public Trustee collects a charge for this work when the estate comes into his hands for administration, the position will be made clear by the issue of a regulation to the effect that the commission charged for the administration of an estate shall bo hold to include the cost of preparation of the will. The right of any person to have a will appointing the Public. Trustee executor prepared free of any charge will thus be fully established.

“It is anticipated that with the further increase of business and by careful and economical management, additional concessions will become possible at a future date. . The office, is assured of a large amount of future business in that the Public Trustee holds the wills of more than 63,000 living testators for safe custody under which he is appointed executor, these wills affecting assets of an estimated value of £251,000,000. As it is known that many other wills appointing the Public Trustee executor are held by solicitors, banks, and other institutions, the continuance of the growth which has been so marked in recent years, seems assured."