GIFTS PROTECTED.

Star (Christchurch), Volume LXVI, Issue 20233, 17 February 1934, Page 32 (Supplement)

GIFTS PROTECTED.

Judgment Dealing With Wills. BEYOND CREDITORS REACH. Per Press Association. AUCKLAND, February 16 It is permissible in New Zealand for a testator by will correctly drawn to place a gift beyond the reach of creditors of the legatee during the life of the latter. This principle was stated by Mr Justice Ilerdman in the course of a judgment. The case was one which came before him on December 11. when interpretation w T as fought of the will of Andrew Wilson, retired farmer, late of Auckland. When testator died on October 24, 1932, he left a widow and eight children surviving him, and he directed that the residue of his estate be divided among his children equally upon their attaining the age of twenty-five In the final clause he provided that the children’s respective shares should not during their lives pass by bankruptcy’* or be liable to be seized, sold or attached or taken in execution by process of law.” Two of the sons were undischarged bankrupts at the time of their father’s death. New Zealand Legislation. His Honor pointed out that under English law no exemption could be created by the author of a gift from its liability to debts of the legatee. In New' Zealand, however, Section 24 of the Property Law Act, 1908, expressly provided that it should be lawful by will to provide that any estate bequeathed to any beneficiary should not during the life of the beneficiary be alienated or pass by bankruptcy or be liable to be fold or attached by process of law. In the present case testator not only provided for absolute gifts at twenty-five which were alienable, he went one step further and provided for their protection. The question was, could be do that? The answer to that question depended substantially upon the scope and effect of Section 24. His Honor decided'that the share or interest vested in a child on attaining the age of twenty-five years was protected by the final proviso of the will.