PRIVATE TRUSTEES' ACCOUNTS. An Audit Wanted.

Free Lance, Volume III, Issue 107, 19 July 1902, Page 8

PRIVATE TRUSTEES' ACCOUNTS. An Audit Wanted.

" TVEAD men tell no tales," and a I M defunct person doesn't trouble anybody about the administration of his estate. We advanced a suggestion some little while ago that the administration ot deceased peoples' estates might be safeguarded more effectually than is the case now, excepting, of course, the Public Trust Office. Human nature is liable to err and trustees in the estates of buried testators are human. While members are looking for fields in which to immortalise themsehes, someone might well advocate the appointment of auditors to examine private trustees' accounts. We don't mean that all private trustees are scamps and thieves, but we do say that the indiscriminate appointment by testators of trustees may lead to evil results. - * itEstates may be left m the hands of lawyers who may, unlike the majority of practitioners, be far from above reproach. There is nothing in law to prevent such persons from squandering the substance of legatees, piling up costs, and almost entirely wiping out benefices intended for others. Of course the Public Trust Office minimises that danger, but, unfortunately, people don't always trust the Public Trustee. There is no reason why inexperienced or careless trustees should not administer the trust in an equitable manner, but the temptations are ofttimes too great and they, like others, fail. * * * It may be that a private trustee has, through inexperience, to have recourse to law. The trust estate suffers. It would not suffer if auditors were appointed to examine his accounts. It is only fair to legatees, wards and persons entitled to benefit under wills that their affairs should be administered with equity, and that their interests should be guarded with jealous care . We have known of many cases in which wards have been, perhaps unintentionally, defrauded of full benefits accruing under wills, the benefits going solely to those who were solemnly adjured to watch their interests. Means should be found to minimise these risks and the best way is to prescribe an audit for trust accounts. * * * The assertion that the accounts of private trustees are frequently in need of audit is no chimera. Goodness knows we have enough inspectors for almost everything in New Zealand. It might be as well to dispense with a few of the less necessary ones, and try a tew auditors of the type advocated. A great many people would get the full money intended for them, and a great many other people would be lightened of much unearned increment.