TRUSTEE LAW

Dominion, Volume 14, Issue 208, 28 May 1921, Page 12

TRUSTEE LAW

DUTIES AND POWERS OF AN

ADMINISTRATOR

A meeting of the Accountant Students’ Society was held on Wednesday night, when Mr. H. D. Edwards presided over a

large attendance of members. The chairman, in welcoming the lecturer, Mr. E. P. Hay, referred to the pleasure it afforded the society to have one who at one time occupied the position of solicitor to the Public Trust Office to lecture on “Trustee Law.”

Mr. Hay stated that the duties of an administrator, who was in reality an officer appointed by the Court, included the powers of an executor or trustee. After explaining that an administrator iooke<l to the will or the instrument creating a trust, he outlined the general powers of a trustee, whether created by will or by t.he Court in the case of an intestacy. The lecturer dealt at length with the powars of sale possessed by an administrator, and stated that where he had a generol power of sale over personalty, this did not apply to realty, unless expressly given by the trust instrument or by authority of tho Court. This, however, did not apply where it was necessary to sell realty to pay debts or shares against the estate. Mr. Bay emphasised the powers of an administrator to carry on a business of a deceased person, and stated that there was an implied authority to carry on a business with a view to a satisfactory sale and a realisation of the good will. Unless there was an express authority in the will the administrator should invoke the aid of the Court to empower him to carry on the budnees -for any length of time, oih«i-wise he did so at. Ins own personal liability. A trustee had only power to use the assets utilised by the testator in his lifetime in a business unless express power was given him by the deceased. A trustee could not give a lense with an optional purchasing clause, although the Court had power to do this if the circumstances warranted it. In regard to sales of realty, the Court had power to authorise postponement of sales in certain circumstances, though Judge® were very reluctant to do so. Although in certain cases an administrator had the right to allocate part of the estate in payment of shares of beneficiaries, and unless it was ''Pec’’ allv provided for in the will, he should obtain the necessary authority of the Courts who were there for that purpose The lecturer also dealt with an administrator’s inability to give credit nJthorn'll 'f circumstances warranted it. the Court would authorise iho granting of a mortgage for the unpaid purchase price At all times an administrator should exorcise a wise and prwlent judgment and acting solely in tho interests „f beneficiaries, he should consult them whore necessary as to v4at shall happen to the trust property. At the conclusion of bis leebiTO Mr. Hay was accorded a hearty vote of thanks'.