INTEREST ON LEGACY.

Waikato Times, Volume 107, Issue 17980, 27 March 1930, Page 6

INTEREST ON LEGACY.

CASE FROM WAIKATO. JUDGMENT FOR PLAINTIFF AUCKLAND, Thursday. A legal question involving the pa; ment of interest on a large legacy wa decided by Mr Justice Ostler in th. Supreme Court yesterday in favour of the recipient of the legacy. The will was that of the late Alexunder Bell, who in a second codicil bequeathed to his daughter, Janet Taylor, a mortgage of £25,000 held by him from his son-in-law, J. W. Taylor, over a farm in Ohaupo Road, Waikato. A condition was that the daughter was to pay £SOOO to his trustees. The plaintiff in the originating summons for interpretation of the will was Janet Taylor and the defendant the Guardian Trust and Executors Company. The first question to be determined was whether the plaintiff was entitled to interest. In His Honour’s opinion there could be no doubt whatever that what the testator intended to bequeath to the plaintiff was this specific mortgage, and not merely £25,000. The bequest of a mortgage or a bond carried with it arrears of interest that had accrued during the testator's lifetime.. The plaintiff was therefore entitled to the arrears of interest on the mortgage which accrued during the testator’s lifetime. The other question for determination was whether the plaintiff must pay interest on the £SOOO which by the bequest must be paid by her to the trustees as a condition of the bequest. In His Honour’s opinion plaintiff was .not, liable to pay any interest on the £SOOO. ' All parties were allowed their costs as between solicitor and client, to be taxed by the registrar and paid out o*. the estate.