LATE SIR JOSEPH WARD

Waikato Times, Volume 113, Issue 18878, 23 February 1933, Page 7

LATE SIR JOSEPH WARD

THE DEATH DUTIES. REFUND OF PORTION SOUGHT. PETITION BY THE FAMILY. WELLINGTON, Wednesday. A refund of portion of the death duties paid in connection with the estate of Sir Joseph Ward is sought in a petition signed by Sir Cyril Ward, o f Christchurch, baronet, Vincent Aubrey Ward, of Wellington, company director, Gladstone William Ward, of Christchurch, salesman, and Eileen Josephine Wood, wife of B. B. Wood, of Christchurch, merchant, and presented to Parliament to-day. The petitioners and Awarua Patrick Ward, salesman, formerly of Wellington, but now temporarily resident in the United States of America, are beneficiaries under their father’s will. The estate is vested in the Public Trustee us executor and sole trustee. The petition states that the principal portion of the estate consisted of landed property In Wellington, Auckland, Christchurch and Invercargill. The liquid assets of the estate, consisting of cash at bank, life insurance policies, Government stock and shares, were more than sufficient to satisfy the liabilities and obligations of the testator, but owing to the high Government valuation of landed property, and the fact that under a provision of the Death Duties Act it is not feasible to deduct as a liability guarantees given by the testator in his lifetime, the total death duties payable amounted to approximately £76,000, of which £70,515 or thereabouts have been paid.

Provision for Family. The petition states that Sir Joseph made the following cash provisions for his children: —Cyril, £I2OO annually; Mrs Wood, £IOOO annually; Vincent, Gladstone and Patrick, £BOO each. Such payments were to be made out of the residuary estate for such periods as the trustees should think proper. Continuing, the petition says that to enable Sir Joseph to devote more attention to the public business of the Dominion in his capacity as Prime Minister, he transferred to the members of his family a quota of shares in the Canadian Knight and Whippet Motor Company, Limited, formed by him for the purpose of the importing and disposing of motor-cars, in respect of which certain American and English agencies were acquired by him. As a consideration for the receipt of the shares, Sir Joseph arranged for his children to guarantee repayment of certain advances made and to be made by the Bank of New Zealand to the Whippet Company. About April, 1932, .the comptiy went into voluntary liquidation. The probable dividend payable in the liquidation of the company to its creditors would not exceed six shillings in the pound. As a consequence, the petitioners and Patrick Ward had been called upon to pay or provide for payment of their respective guarantees to the hank.

The petition also states that Sir Joseph was interested in two companies, the River Shingle and Sand, Limited, and the Ilutt River Shingle Company, Limited. Sir Joseph arranged for the transfer of shares held in the Hutt River Shingle Company to certain of the shareholders in the Whippet Comany. As a consideration for transfer, he arranged that Vincent Ward should guarantee tlie Rank of New Zealand in respect to advances by the bank to the shingle company. These companies, although not in actual liquidation, are insolvent, and Vincent Ward lias been called upon io pay the amount guaranteed by him to the bank, In addition, Sir Joseph had entered into guarantees in respect of bolb the Whippet Company and the Shingle Company, and the Public Trustee has been required to pay out -of the estate Ihe amount of those guarantees. Under the Death Duties Act no allowance could legally be made in assessing the value of the estate for death duty purposes in respect to these guarantees, nor was any allowance made for the liability of Sir Joseph under 'the guarantees given by him. A claim for deduction had since been made by the Public Trustee in respect of Sir Joseph’s guarantees, but the claim had not been settled. '

Estate Assessed at £291,000, Consequent on the fact that the Government valuations on landed properties at Sir Joseph’s death were excessive and the guarantees mentioned were not deducted, the estate was assessed as worth £291,000 Difficulty 'had been experienced • in finding the cash for the payment of the death duties. It had also been difficult to find tenants at a reasonable rental for properties which were highly valued and in respect of which high rates had to be paid. Thus, the Public Trustee, was unable to give effect to the provisions relating io annual payments to members of Hie family and had informed them that no further distributions could lie made out of the remainder of the estate for some time. in December, 19,')2, the Public Trustee estimated the net value of the estate, after providing for guarantees and liabilities and payment of death duties, lo he. £69,375. If the amount of death duties paid were added. Hie petitioners suggested that (lie actual net value of the estate prior lo the payment of death duties was £140,000, on which amount death duties would lie approximately £35,000.

II was therefore claimed that the petitioners had not only paid lo Hie Slate, twice the sum for deatli duties that should reasonably have been paid, but wore at present without income from tlie shares in the estate left to them under Hie will.

Circumstanoos of the Family. The present circumstances of the family arc described in the petition as follows: Sir Cyril Ward lias a family of six children and heavy commitments. Mrs Wood lias two children and is entirely without means, except from her share in Ilia csiale. Mr Gladstone Ward has two children, is unemployed, owing to Ihe depression, and is entirely dependent on his share in the estate.

Mr Vincent Ward was a member of Parliament, but owing to liability wiieli be bad incurred lo enable bis father to be free from private business affairs of a harassing nature lie was compelled lo resign bis position and devote his whole time to Ihe affairs of the, Whippet Company and the (Continued in next column.)