The Pamphlet Collection of Sir Robert Stout: Volume 72
Its Security.—Capital Funds and Interest Guaranteed
Its Security.—Capital Funds and Interest Guaranteed.
The security and fidelity of the administration of the Public Trustee must undoubtedly affort a great attraction to any person who may contemplate the appointment of a trustee. The Public Trust Office is a Government department. The fidelity of its administration is guaranteed by statute; and, by 'The Public Trust Office Acts Amendment Act, 1891," the colony guarantees the integrity of the capital funds of properties placed in the Public Trust Office where there is no direction for the investment of such funds, or where there is no direction for such investment other than generally that the funds are to be invested at the option of the Public Trustee, in General Government securities of New Zealand or in mortgage of real estate within the colony.
The colony also guarantees on such capital funds for investment a common rate of interest, to be determined from time to time by Order in Council, and to be credited quarterly, free of all office charges of the Public Trust Office, to the properties from which the funds arise.
A person making a will or arranging a trust must always be seriously concerned as to the security of the capital funds; and the larger the capital funds the greater will be the concern for security, and the less for a high rate of interest.
The Public Trustee, in his official capacity, never dies, never leaves the country, and never becomes disqualified or involved in private difficulties, or distrusted. It will thus, be evident that, by his appointment as trustee, the preparation of the numerous deeds, and the consequent expense, which might become necessary in the case of a private trustee are altogether obviated. These advantages will be readily appreciated by all who have any knowledge of the incidents of trusteeships.