LARGE ESTATE

Poverty Bay Herald, Volume LXIV, Issue 19456, 15 October 1937, Page 12

LARGE ESTATE

HAWKE’S BAY MAORI VARIOUS LEGAL PROBLEMS FUNDS CO TO DAUGHTER Judgment was issued by Mr. Justice Call an in Auckland answering in detail nine questions that had been submitted to him by originating summons regarding the management and disposal of an estate left by a Hastings Maori, known as Rangi Kerehoma. When he died in the epidemic of November, 1918, Kerehoma left two settlements, one of £25.000 and the other of property then valued at £62,000, but now at about £95,000, and also a will. His only child is a daughter, Miss Reremoana Kerehoma, who will come of age early next year. The affairs of the estate have given rise to much litigation. The present action was to determine various legal questions arising out of a decision of Lite Supreme Court given last year that the funds of the settlement amounting to £95,000 never had formed part of Kerehoma’s estate disposed of by his will. The trustees for many years had administered the estate on the assumption that these funds were part of the estate and available for the purposes of his will. Annuitants Overpaid On the taking of accounts after that judgment it was found that the annuitants had been considerably overpaid and that the trustees had overdrawn commission. The effect of the judgment issued ny His Honour is that the funds comprised in both settlements go to me daughter Reremoana, and that the annuitants have no recourse to the moneys in either statement. "It is not established,” said His Honour, That the testator attempted or intended to make funds covered by either settlement at any time liable to provide any of the annuities mentioned in clause 6 of the will.” His Honour’s judgment decides that the annuity granted to Kerehoma's wife according, to Maori custom was payable all out of capital as a debt due at the date of his death, and that an annuity of £3OO a year granted to the testator’s foster-mother by the Native Land Court was likewise payable out of capital, as the whole estate was liable for the payment of Uie annuity in terms of the Cour. order. Another Point Decided The judgment further decides ff ■ ihe annuities amounting to £7OO granted by the will are payable solely out of income and recourse canhoi De had to capital, but that the arum: ties are a continuing charge on th~ income; that the equitable doctrine of election contended for by the annuitants and the trustees did not apply, and that Kerehoma by his will nad not purported to make the funds held by his trustees under the lw < settlements available for the payment of annuities, nor had he intended to give the trustees a commission on anything else than his unsettled estate.

The plaintiffs were represented by Mr. A. H. Johnstone, K.C.. ana * Bate, Mr. Stanton appeared for the Public Trustee and annuitants; Mr. North and Mr. Vialoux for the guardians of the testator’s only child; and Mr. Cousins, of Wellington, for the assignees of the interests of certain annuitants.