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Hokitika Guardian, 12 July 1921, Page 2

“What subsidy is obtainable in a case where a testator leaves a substantial part of bis estate to trustees on trust for such charitable ajud educational institutions as they from time to time think lit to selected? This by no means uncommon wording of a will has,” says the “New Zealand Journal of j Health and Hospitals,’’ “more than once l«?en referred to the Department j for information as to what subsidy any such allocations by the trustees would be entitled to. The following will serve < as an example—The trustees resolve i to donate £SOO to each of five separate ; hoards. The questions that arise are (a) 1 is such allocation a donation from the. trustees which would carry subsidy <T 245. to the pound, or is it a bequest C | would carry subsidy only of ids. in tin* pound, with a maximum of £SOO. as j fixed by section 38 (3) of the Act; and j (b), if the latter can each hoard receive ; £250 subsidy, or would each only re- j ceive £IOO subsidy, thus making the to- ! tal subsidy £500? The reply to (a) . is that trustees have no right to make grants out of corpus; they are I merely instruments b.v means of which I the will takes effect that is to say, they are acting in the capacities rather of executors than trustees. Trustees can, within certain limits, make grants I out of income from an estate. The allocation made by the trustees under I the above example therefore is a bequest just as much as if the testator I himself made the allocation, and it carries subsidy only at the rate’ of 10s. ! in the pound. As regards (b) the maximum on £SOO payable on the astate of a single testator applies merely to the subsidy payable to a particular board or separate institution and not to the aggregate amount of all the subsidies paid. In the ease in point, therefore j each board should claim £250 subsidy being at the rate of 10s. in the pound up to a maximum of £SOO as laid down by the Act. The Act would indeed he difficult of applic ition if it were intended otherwise as lioard of the Department might be entirely in ignorance of what any other hoards were receiving, and would naturally • claim up to the maximum allowable. Supposing, however, instead of realising 1 the eslate straight away, the trustees ■ for certain prudent and proper reasons administered it. and delayed the distribution of the corpus, in the meanwhile J making proportionate grants out of the income to such beneficiaries, such grants would carry subsidies at the rate ; for bequests—viz.. Ids. in tjie pound. .1 They are in the nature of bequests.” i ■»■ 1