WILL IN DISPUTE

New Zealand Herald, Volume LXXIII, Issue 22543, 7 October 1936, Page 15

WILL IN DISPUTE

SPINSTER'S ESTATE MENTAL CAPACITY QUESTION INVESTMENTS IN COMPANIES ADMINISTRATION OF AFFAIRS [by TE],EGRAPH —PRESS association] CHRISTCHTJRCH, Tuesday The hearing of the application to have probate of a will made by the late Elizabeth Smith, spinster, revoked and the will declared null and void was continued before Mr. Justice Northcroft in the Supreme Court to-day. The will was sworn for purposes of probate at £77,000, but at the time it was drawn up the estate was estimated at between £50,000 .and £60,000. Plaintiffs are Olive Judge and Ivy Cookson, both of Christchurch, who are nieces of the testatrix, and defendant is the Guardian Trust and Executors Company of New Zealand, Limited. J ; Dr. Baxter said he met Miss Smith in the office of the South British Insurance Company in November, 1933. Ke had been informed previously that Miss Smith v had changed several oi: her investments, and that, she had been approached by share salesmen and appeared to be rather carried away by them. He had a conversation with Miss Smith, and after an interview said he was not satisfied with her mantal condition. For the purposes of further observation he drove her home. Witness' Opinion Partly as the result of his conversation with Miss Smith and partly as a. result olf what he had been told she was doing with her estate, said witness, he formed the opinion that she was an easy prey for enterprising share salesmen, and he wrote a report to that effect.

Percy Harold Harris, manager in J Christchurch for the South British Insurance Company and the Guardian ■ Irust and Executors Company, said \ that in 1933 he learned that Miss Smith 1 was disposing of South British In- • surance shares to the Investment Executive Trust. He saw her about it. She ■ agreed to give the Guardian Trust power of attorney to adminster her a ,ffajrs. She also agreed to see Mr. C. ! S. Thomas, solicitor, with the object of taking action to recover the shares. Witness learned that Miss Smith had • been selling Investment Trust debentures and buying mining and flax shares, also shares in Publications, Limited. Action Not Launched Action for recovery of the shares was not launched, said witness, because Miss Smith, after leaving Mr. Thomas' office, was prevailed upon by a share salesman to stop the action. She accepted dividends from debentures in the Investment Trust and also bought new debentures. The head office then suggested that Miss Smith be brought under the Aged and Infirm Persons Act "to check her financial atrocities." Witness described interviews with Miss Smith concerning her will. Mr. H. F. O'Leary, K.C., for the applicants: What would be the commission for the Guardian Trnst in administering the estate? Witness: The rate is 2 J per cent on revenue, 1 per cent on capital. Under this will there is a perpetual trust which, so far as we can see, the Guardian Trust will administer for evermore ? —Yes. L u Th l s mea n a very substantial benefit to your company?— Quite. Mr. O'Leary read extracts from letteis by witness to his head omee. The extracts were:— July, 1933.—She is getting senile and it is pitiable that there is no one to care for her. July 18. The old girl is getting just a little bit cunning and has not been quite frank regarding her affairs. Contracts of Testatrix July 29. Recently she has been making some foolish contracts behind our backs and Mr. Thomas is of opinion hin 61S nca P instructing August 3.—Her transactions of late behind our back make <as/convinced that she must be classed as an infirm person. There is every hope of it being pro\ed that Miss Smith is not capable of looking after her own affairs. August 25. —The way I should care to express myself would perhaps be .unprintable, so I well keep calm. The old girl has absolutely dug her toes in, and how we are going to get her out of the mess she has placed herself in I do not know. I spoke to Mosley yesterday afternoon, after the Court- case, and, although I could not draw anything definite from him, there is no doubt the old girl convinced him she is not safe to be left on the high road. r " January 18, 1934.—1 am more than ever convinced the old lady' is irresponsible. Questions by Counsel March 16. —I will now make an effort to get Miss Smith in a proper state of mind for the making of a will. I propose to give this early attention and, provided she will come up to scratch, to eet Baxter to witness her signature. Mr. O'Leary asked further questions about the will and said: At the time this will was made did you know Miss Smith was in the habit of overhauling garbage tins? Witness: Yes. Mr. O'Leary: Did you know she was in the habit of sitting in tram shelters until late at night to avoid using electric light in her home? Witness: I had heard it. In another letter witness had written that the matter of getting the will signed was urgent. Concerning this Mr. O'Leary said: "Why wera you so interested in the matter? What did it matter to you whether she died intestate or not, or did you think that if the Guardian Trust did not get the estate the Public Trust would? Witness: Yes, that was the point. The case was adjourned until tomorrow.

DECISION RESERVED APPEAL COURT HEARING [BY TELEGRAPH —PBESS ASSOCIATION] WELLINGTON, Tuesday The hearing of the case, Robert Keith Clemow, of Auckland, and others, versus the Guardian Trust and others, before the Court of Appeal, entered the fourth day to-day. The case concerns legacies totalling £950 under the will of James Joseph Burt Beale, of Auckland, • which were granted appellants in the will, but Dot in subsequent codicils. Mr. Henry, counsel for the firstnamed respondents, submitted that it was clear from all the evidence that the testator was not generally insane before February, 1935. The evidence given by the two appellants themselves showed that the testator «as sano at least on one very important item, namely, his business ability. It followed that it was impossible to find the testator generally insane if he were sane on a topic of this nature. In considering the nature and volume of the correspondence by deceased, Mr. Henry submitted that, up to February S, 1935, the whole of the letters, and memoranda written bv testator were rational and reasonable, in view of the magnitude of his estate and the matters of which he desireo his solicitor to take full control, and f; . also im view of the various people ir whose affairs deceased was concerned. Decision was reserved by the uoun< m