17

B.—0

Increase in Rates of Interest allowed on Moneys invested in the Common Fund and Reduction in Office Charges. 19. From the Ist January, 1926, important changes were made in the rates of interest allowed on moneys invested in the Common Fund and in the rates of commission charged for the administration of estates by the Public Trustee. The interest was increased and the charges were reduced. This is a continuation of the policy of the Office, which endeavours to give the best service on the best terms that circumstances will from time to time permit. Evidence of this will be found in the concessions which have been extended to clients and beneficiaries during the past few years. The rates of interest have been increased, the method of crediting it has been made more liberal, the rates of commission on both capital and income have been reduced, and fees previously charged for special services have been abolished, making the commission an inclusive charge for complete administration. The most important of the changes made on the Ist January last was an increase of J per cent, in the rate of interest on moneys invested in the Common Fund of the Office and held on behalf of minors, life tenants, beneficiaries for a term of years, Government and local-body sinking funds and superannuation, funds, and insurance companies' deposits. The rate allowed is now 5 J per cent. The next most important change made was the reduction in the commission charged on the administration of estates of a value of under £1,000. Previously such estates were subject to a commission of 5 per cent, on the proceeds of certain assets to the value of £400, and 2j per cent, on the balance, while in estates exceeding £1,000 in value the highest rate chargeable was 2| per cent. The reduction in the charges for administering estates of a small value has been under consideration for a long time with the desire to make the. administration as inexpensive as possible so that the charges might not press unduly on clients not favourably placed to bear them. The Public Trustee is called upon to administer a great many small estates, and the reduction made in the commission will extend throughout New Zealand. In the past where circumstances have warranted such a course the charges have been reduced under the authority granted to the Public Trustee in such cases, but the reduction in the commission places the matter on a better basis and makes the smaller charge not one of concession but one of right. To ensure, however, that the administration of estates of a minimum value shall not become a financial burden the minimum charge has been increased from £2 2s. to £3 3s. The former was in many cases wholly insufficient, and where the latter may be thought too heavy the power to reduce it will be used. Another important change is one affecting the administration of estates of considerable value. The following table shows the previous scale applicable to the realization of assets and the one which was brought into force as from the Ist January last, from which it will be seen that a reduction of ss. per cent, has been made after a value of £25,000 has been reached.

Following upon this reduction in the rates of commission charged on the realization of assets, a reduction was also made in the rates of commission chargeable on assets in excess of £5,000 transferred in kind to beneficiaries. The following table sets out the reduction in this connection: — Former Scale. Per Cent. Amended Scale. Per Cent. On the first £5,000 11 On the first £5,000 . . ij On the next £5,000 . . 1 On the next £5,000 . . f On balance .. \ On the balance .. §

3—B. 9.

Former Scale. Per Cent. Amended Scale. Per Cent. On first £5,000 .. 2| On first £5,000 .. 2f On next £5,000 . . l| On next £5,000 .. l| On next £40,000 .. 1 On next £15,000 .. 1 On balance .. £ On balance .. .. -|