LAW REPORTS.

Dominion, Volume 5, Issue 1521, 17 August 1912, Page 14

LAW REPORTS.

SUPREME COURT. (Before His Honour Mr. Justice Sim.) THE DEATH DUTIES ACT, 1908. AND POLICY MONEYS. Mil,, CEACROFT WILSON'S WILL. A special case under the Death Duties Act, 1008, was heard in tlio Supreme Court yesterday, before. Mr. Justice Sim. Tlio action whs brought for the purpose of obtaining a declaration as to how certain life policy moneys should bo assessed for the purpose of death duties. Tho plaintiff was the Public Trustee, as executor of tho will of Alexander Cracroft Wilson, gentloman, late of Christchurch, while tlio defendant was tho Commissioner of Stamps. J. W. Macdonald, with him Mr. F. E. Kelly, appeared for tho Public Irusteo, and tho Solicitor-General (Mr. J. W. Salmond) appeared for the Commissioner of Stamps. It appeared that ou Juno IG, 1877, the Into Alexander Cracroft Wilson executed a deed of settlement in contemplation of his intended marriage with Laura May Munro. By this deed ho assigned (after the solemnisation of tho marriage) three policies of assurance on his own lifo to trustees, who (upon his death) •were to receive and invest tlio moneys payable thereunder. If his widow survived him, the income from the monevs invested was to be paid to'her during her lite, while, after her death, it was to bo held in trust'for such purposes as ho should by deed or will appoint, mid in default of appointment in trust for tho children of the marriage. . On two of tho three policies the premiums had teen paid in full at the date of the execution of the deed. On tho third, Mr. Wilson covenanted to pay tlio premiums as tliey fell due. The marriage took place, and the premiums ,on the third policy were dulv paid. On January 21, 1911," Mr. Wilson died, and probate of tho will was granted to the Public Trustee on February i, 1911. By this will ho appointed the policy moneys, after his wife's death, to his children. '

In assessing duty, tlio Commissioner of Stamps included in tho dutiable estate tlio whole of tho insurance moneys, .£1(35 15s. Gd. This brought the final 'balance up to .£9148 Gs. Id. In accordance with Section 13 of-the Act, tho sum of £M 0 (in respect of the widow's interest) was deducted from tho total amount. The Commissioner then assessed tho estate duty payable on the residue {MUG Cs. Id.) at tho sum of „£207 Gs. id. This was at the rato of 5 per cent., the amount which an estate of ,£9OOO bears. The policy moneys were brought into tho estate by virtue of th.9 special provisions of Section 5 of tho Death Duties Act, 1909.

It was contended by the Public Trustee that as the policy moneys were received by him, charged with the life estate of tho widow created by the deed of settlement, tho policy moneys should be valued as tho Act provides as at deceased's death. To cnablo the value to be so taken, there should be deducted from the amount received the value of Mrs. Wilson's life interest. This life interest (it was contended) should be calculated on an actuarial basis, reckoning the probabilities of her lifo according to the accepted tables oi mortality that being the manner in which buyers of such property in tho market mako their calculations. After hearing lengthy legal argument, his Honour reserved decision.

AN ALLEGED LIBEL. v GOIiDON VERSUS "N.Z. TIMES." (In Chambers.) , . In tho Supreme Court in Chambers yesterday Mr. Justices Sim dealt with interlocutory matters in connection with an action, claiming ,£ISOO damages, for alleged libel. Tho parties to the action are Frank Edward Arthur Gordon, utility poultry expert, of Napier, plaintiff, anil the "New Zealand Times" Company, Ltd., defendants. There wero two matters before- the Court—an application to havo a witness examined at Napier on Tuesday next, and a summons for interrogatories. Both applications' were by plaintiff. Mr. E. V. Bunny appeared for nlaintiff, while-' Mr.'- D. M. Findlay appeared for the defendant company. In the first matter an order by consent was made to have the witness in question -examined at Napier at 2 p.m. on Tuesday next. Mr. •• Findlay raised opposition to the summons for interrogatories on tho pounds that they were applicable only to a libel not against a newspaper, that tliey were oppressive and that Uiey would not assist tho plaintiff. After healing argument his Honour reserved decision.