ANNUITY REDUCED

New Zealand Herald, Volume LXIX, Issue 21347, 23 November 1932, Page 16

ANNUITY REDUCED

PAYMENT TO A WIDOW

APPLICATION BY TRUSTEES

The first case of its kind to be taken in Christchurch was heard in the Supreme Court there before Mr. Justice Ostler last week, when proceedings were instituted under the recently-passed National Expenditure Adjustment Act. Section 42 of tho Act provides that the Supreme Court may modify tho provisions of a deed, will, or settlement, in so far as they provide for the payment of an annuity or other periodical payment, if the Court is satisfied that the terms can not be complied with without causing undue hardship. The of tho estate of Samuel Beach, farmer, sought a reduction in the money paid to the widow.

Counsel for the trustees said that under the will of the testator the interest on £IOOO was bequeathed to the widow. She took proceedings under the Family Protection Act and an order was made increasing her allowance to £2 10s a week, to be charged on the whole estate. There had been a reduction in the value of the land in the estate and, under present conditions, the trustees deemed it their duty to place the matter before the Court to see if any variation could be authorised.

Counsel for the residuary beneficiaries said that the beneficiaries had been agreeable to Mrs. Beach having the net income of the estate, after the trustees had provided for any emergency. Ho suggested that the order should be varied to 30s a Week. '

Counsel for Mrs. Beach submitted that the trustees were receiving an amount which, if held over, would nearly pay the widow's claim in full. There was a liquid capital of £3OO, and any deficiency could be paid out of that sum. liis Honor said that the capital was very small. The widow should be satisfied with the income and not ask to entrench upon the capital. It was almost as much to her interest® as to those of tho other beneficiaries that she should not take every penny of the capital. She would have been well advised to have accepted 30s a week.

An order was made for a reduction from £2 10s to 30s a week as from April 1 last, until a further order was made, tho balance of the income to he retained by the trustees to meet unforeseen eventualities.