PROBLEM No. 15.

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The life of Hezekiah Hopkins had been a warning rather than an example to others, and the administration of his affairs at death caused his Executors and Trustees to use words which are only permissible amongst gentlemen when the ladies have withdrawn from the dinner table.

Mr. Hopkins died on the 25th June, 1913.

His Will had been proved, Estate Duty and Legacy Duty had been paid, but the Trust could not be closed owing to the fact that the Residuary Estate had been left to Nathaniel Hopkins, a nephew, for life with remainder over to the said Nathaniel's eldest god-son Walter Blackside, subject to an annuity of £200 which the Testator had covenanted to pay to the "Pride of Bristol," a prize fighter, who had acted as bodyguard to Mr. Hopkins during that gentleman's earthly peregrinations.

The Residuary Estate consisted of the following property:—

(1) Leasehold Property having 30 years to run, producing £900 per annum. The property, which was valued for probate at £15,000, and which was subject to a Ground Rent of £100 per annum, was sold on on the 24th June, 1914, for £16,400 and the proceeds invested on the following day in Consols at 73, including brokerage, &c.

(2) Deceased's Share in the firm of Hezekiah Hopkins &Co. This amounted to £18,000 upon the death of Mr. Hopkins, and, according to the Partnership Deed, was to be paid out by instalments of £6,500 a year including interest at 5% on the unpaid balances. The first instalment was to be paid on the first anniversary of deceased's death.

(3) A Reversionary Interest in the Estate of his Uncle Mr. John Oppit, the life interest of which was being enjoyed by Mrs. Oppit. This Reversionary Interest was valued, at the death of Mr. Hopkins for probate purposes, at £850, and was retained until the 25th June, 1916, when it fell into possession. It then consisted of £1,500 India 31/2% at 88.

(4) £10,000 invested in a Loan redeemable on the 24th June, 1915, with interest at 10% per annum payable half-yearly on the 25th December and the 24th June in each year.

The Trustees decided on their own responsibility to retain this investment, which was redeemed on the due date and the interest paid in the meanwhile.

(5) £10,000 India 3% Stock at 84, purchased by Deceased on 18th June, 1913.

Upon the 25th June in each year the balance of Corpus Realised was to be placed on deposit with the Hong Kong and Shanghai Bank at 4%, less any fraction of £100 which was to be retained on Current Account at the Union of London and Smith's Bank.

Mr. Nathaniel Hopkins died on the 25th June, 1916.


Write up the books showing the position of affairs when Mr. Blackside came into the property, ignoring Income Tax.

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