DEATH DUTIES.

New Zealand Times, Volume XXXVI, Issue 8186, 30 July 1912, Page 3

DEATH DUTIES.

THEIR APPORTIONMENT.

QUESTION BEFORE APPEAL COURT. Tho apportioning of death duty and tnit-cossion duties among tho beneficiaries under tlie will of tho lato Henry ■Holmes, sheopfarmcr, <>t Matahiwi, near Mnstorton, was a matter which mint' before tho Court of Appeal yesterday. On tho bench were their Honors the Chief Justice (Sir Robert Stout), Mr Justice Edwards, and Mr Justice Sim. Tho parties were William Henry Beetham and diaries Elgar, trustees of the will, plaintiffs, and Sydney Emily Mary Holmes, widow of the deceased, and John C., Bello C., and Sydney C. Holmes, three infant children of the deceased, defendants. Tho lato Henry Holmes died on April 27th, 1911, and probate of his will was granted to William Henry Beetham and Charles Elgar (trustees and executors) on Juno 27th, 1911. Tho final balance of the estate of tho deceased was assessed by tho Commissioner of Stamps at £62,487 14s lid, and the estate duty thereon (at 9J per cent.) amounted to £6040 9s Bd. Tho. succession of Sydney Emily Mary Holmes was assessed by tho Commissioner at £40,442 17s, on which £923 17s 2d is due a ll - succession duty. Tho succession of the rhree infant children was assessed at £14,316 7s lid, on which no succession duty is charged. Other successions ndT concerned in the proceedings wore assessed at £1728. Tho trustees of the will took out an originating summons in April last in order that tho Supreme Court might decide as to tho manner in which the estate duty and tho succession duty were to be apportioned among tho successors. Tho following questions were submitted for tho decision of tho court:

(1) Whether any part of the estate duty (and, if so, what part) is payable by Sydney Emily Mary Holmes, either out of the income accruing to her under tho will or otherwise?

(2) Whether tho succession duty, payable in respect of Sydney Emily Mary Holmes’s succession under the will, is payable out of her income or otherwise ?

(3) If any part of tho duties is payable by Sydney Emily Mary Holmes: (a) Can the plaintiffs after paying the duties immediately recover from her the part payable by her? If tho answer to (a) is in the negative ; (b) Ought the plaintiffs, after paying tho duties, to retain from time to time the income accruing to the widow under the will until the amount of duty payable by her has been satisfied?

(b) In tho case of her death before sufficient income has accrued to satisfy her share in the duties, will the residue of such share be payable out o her estate by her executors or administrators P

When the matter came before the Supreme Court his Honor the Chief Justice ordered tho to bo removed into tho Court of Appeal for argument. Mr G. H. Fell appeared for the plaintiffs, and Mr A. Gray and Mr M. Myers for the defendants. Decision was reserved.