SUPREME COURT.

Dominion, Volume 5, Issue 1527, 24 August 1912, Page 14

SUPREME COURT.

THE DEATH DUTIES ACT, 1308. -MR. CRACROFT WILSON'S WILL.

t Reserved decision in a special case under the Death Duties Act, 1908, was delivered in the Supreme Court 'yesterday lij Ml'. Justice Sim. Tho action was bi ought for tho purpose of obtaining a declaration as to how certain life policy moneys should be assessed for the purposo of death duties. The plaintiff was tile Public Trustee, as executor of the will or-Alexander Cracroft Wilson, gentleman, lato of Chmtehurch, while tho deieiutont was the Commissioner of Stamp* At the heariuff 3ft. J If, MawlomUd! with him Mr. 1 1. 1,. Kelly, appeared for tho Public Irustee, and the Solicitortrenwal (Mr. J. W. Salmond) appeared for the Commissioner of Stamps. It appeared that on June 16, 1577, the late Alexander Cracroft Wilson executed a deed of settlement in contemplation of his intended marriagy with Laura May Mtuiro. By this deed lie assigned (alter the solemnisation of the murriage) three 'policies of assurance on his own lifo to trustees, who (upon his death) were to receive and invest the moneys payable thereunder. If his widow survived him, the income from the moneys invested was to be paid to het during her life, while, after her death, it was to bo held in trust for such purposes as he should by deed or will appoint. On January 21, 1911, Jlr. Wilson died, and probate .of the will was granted to the Public Trustee on February I, 1911. ■By this will he appointed the policy moneys, after his wife's death, to his children. In assessing duty, the Commissioner of Stamps included in the dutiable estate tho whale of the insurance moneys, JC4635 las. Gd. This brought the final' balajico up to ,£9MG Gs. Id. In accordance with Section 13 of the. Act, the sum of .£SOOO (in respect of the widow's interest) 'was deducted from the total amount. The Commissioner then assessed the estate duty payable on the residue (JE4IIG Gs. Id.) at the sum of ,£2O" Gs. Id, This was at tho rate of 5 per cent., tho amount which an estate of ,£9OOO bears. It was contended by the Public Trustee that as tlie policy moneys, were received by him, charged with the life estate of the mdow ercated by the deed of. settlement, the policy moneys should be'valued as the Act provides as tit deceased's death. To enable tho value to bo so taken, there should be deducted from tho amount re. ceived tlie value of Mrs. Wilson's life interest. This life interest (it was contended) should be calculated on an actuar. inl basis, reckoning the probabilities of her life according to the accepted tables of mortality, that beiug tho manner in which buyers of such propeity in the market make their calculations. His Honour, in giving judgment, said he could find nothing in the Act to justify tho contention of tho Public Trustee. For the purposes of tho Act, the whole of tho insurance moneys hail to be treated as part of the estate. 1 _ • Tho action was accordingly decided in favour of the Commissioner of Stamps. ■ WHO KEEPS IT? THE CABT AND ITS CLAIMANTS. Mr. Justice Edwards yesterday heard an appeal against a decision delivered by Dr. A. M'Arthur, 5.M.,. in the Magistrate's Court in. Juno lost. In the original action, tho Hntt County Council proceeded against tho Upper Hutt Town Board, planning a sanitary cart valued at JE3S, which tho plaintiffs stated belonged to them, but which had been detained by the Town Board. The County Council claimed possession of the cart, or payment of .£35, and ,£lO .damages for detention. It appeared that after the formation of the Upper Hutt Town Board, tho. parties had decided the ownership of certain properties which had originally belonged to tho older body (tho County Council). There was no existing written agreement, but tho cart had been in possession of the Town Board now for two, years. The County Council, however, pleaded that they had forgotten tho cart, and never intended that it should be included in the settlement. His Worship gavo judgment in favour of tho Town Board, and iti was from that, decision. that the County Council yester-1 day appealed to the-Supreme Court. . Mr. T. C. A. Ilislop appeared for tho appellants, while Mr. P. appeared for tho respondents. After hearing legal argument, his Honour allowed tho appeal, with .£5 costs.