Part 2

Now the Steam Roller belonged to a Company, of which Oscar Gubbins, son of Charles Gubbins and grandson of George Gubbins the Founder of the Family, was a Director.

Hearing of the accident he hastened to comfort the Widow in her affliction, and succeeded so well that after a decent interval had elapsed Mrs. George Gubbins became Mrs. Oscar Gubbins.

A child was born two years later, three months prior to the death of Oscar Gubbins, the Father. The little boy was christened Charles, and after the funeral of Oscar Gubbins, Mrs. Gubbins took her three little boys, George, John and Charles, to Ventnor, in the Isle of Wight, for a change of air.

It was in the lounge of the Sea View Hotel at Ventnor that Mrs. Gubbins met Mr. Charles Gubbins, first cousin to her three late husbands.

Now Mr. Gubbins had ofttimes heard of the much-weeded Widow, but when he saw her for the first time with the naked eye, he realised what happy men John, George and Oscar Gubbins must have been.

And when Mrs. Gubbins first saw Mr. Charles Gubbins she thought how empty widowhood really was, and what fine men were the Grandsons of George Gubbins, Founder of the Gubbins Family.

Such feelings were not to be denied, and after three months of courtship Mr. Charles Gubbins and Mrs. Oscar Gubbins were declared man and wife by the Rev. Stephen Collins.

For 10 years Mr. and Mrs. Charles Gubbins lived together as happily as a married couple could, and four beautiful daughters, Rose, Violet, Daisy and Poppy were born to them.

And then Mrs. Gubbins died intestate leaving Personal Property valued for Probate at £12,000, and Real Property valued at £8,000.

* * * * *

How was this divided?

PROBLEM No. 11.

Some people say there is no romance in business and that a Brass Plate never brings Clients. Don't you believe that for one moment. Why, Jones owed all his misfortunes in life to a Brass Plate and a Motor 'Bus! It happened as follows:--

Mrs. James Wardle's Husband died on the 30th April, 1914. He was always called Mrs. Wardle's Husband, and he very properly left her his entire fortune, which, at his death, consisted of the following property:--

Freehold Property valued at £6,500, subject to a Mortgage of £4,500 at 5% per annum. The Interest was paid up to the 31st March, 1914.

£3,500 Local Loans 3% Stock quoted at 86-88.

£2,750 2-3/4% Annuities quoted at 77-8.

£2,000 Caledonian Railway Consolidated 4% Stock quoted at 98-100 cum. div.

£800 3% Bradford Corporation Stock quoted at 95-1/2-96-5/8 cum. div.

Life Policies and Bonuses £1,575.

Household Furniture £350.

£1,500 Loan at 5% per annum. The Interest had been received up to 31st December, 1913.

Sundry Debts due to Testator, £346.

Sundry Debts due by Testator, £550.

Funeral Expenses, £42.

Mr. Wardle had for many years left his affairs entirely in the hands of his Solicitor, but Mrs. Wardle, who was Sole Executrix, thought--and very properly too--that the combination of a Solicitor and a Professional Accountant was to be preferred. She therefore journeyed to the City with the intention of consulting her Stockbroker on the matter, but by a curious Providential dispensation, the Motor Omnibus broke down just opposite Jones' office, and his Brass Plate attracted the Sweet Lady's attention!

He prepared the Estate Duty Account, the affidavit being delivered on the 31st July, 1914, and he is now Mrs. James Wardle's Second Husband.

* * * * *

Do as Jones did, but ignore Income Tax, and beware of Widows.

PROBLEM No. 12.

Julius Jones was a poet, and although he died prematurely on the 30th June, 1914, his name will be remembered by posterity as the author of the beautiful Hymn, of which the first line runs "Farewell, old buck, we part to meet again!"

He left the following Estate:--

Cash at Bank £1,500 Household Furniture 350 Life Policies 2,000 Securities valued at death at 18,650 Freehold Property 8,500 ------- £31,000

Liabilities at death were £200, and Funeral Expenses amounted to £30. Legal Expenses were also paid, amounting to £170.

The Securities and the Furniture realised £19,000 and £300 respectively.

A Legacy of £500 was left to his Nephew (free of duty).

The eldest Son of the Testator (Patrick) was given the option by the Will to take over the Freehold Property at £7,500, which he elected to do. The residue of the Estate was to be divided equally between the three children of the Testator:--

Patrick, Peter, Paul,

but he directed that the amounts of £3,000, £2,000 and £1,000 advanced to them respectively on the 1st June, 1911, were to be brought into hotchpot.

* * * * *

Prepare an Account showing the division of the residue, taking into account the Duties payable, but ignoring Interest on Advances.

PROBLEM No. 13.

It would be indelicate to indicate the exact portion of Mr. Hobson's anatomy that was so fiercely attacked by the mad dog, but it is sufficient to say that the bite was the indirect cause of his death.

He anticipated the end, for shortly before he passed away he called in his Solicitor, Mr. Crawley, and made a fresh Will, which was duly witnessed by his aged Housekeeper, Mrs. Uskins, and the Gardener.

The Estate, which consisted entirely of Personal Property, comprised:--

(1) Share in the firm of Hobson Bros., £11,500.

(2) Bonds to Bearer valued at £6,300.

(3) Cash at Bank £220.

The debts due by deceased, including a Loan from the Bank secured on the Bonds to Bearer, amounted to £3,160, and the Funeral Expenses came to £42.

The Property was bequeathed as follows:--

Mrs. Hobson (Widow), £2,500.

George Hobson (Son, aged 27), £2,000.

Selina Hobson (Daughter, aged 18), £2,000.

Wickham Crawley (Solicitor), £200.

Maria Hawkins (Niece, aged 28), £1,000.

George Hobson, Junr. (Grandson, aged 4), £1,500.

Mrs. Uskins (Housekeeper), £500.

Mrs. Rumbolt (Deceased Brother's Wife), £500.

Mrs. Hobson, Senr. (Deceased's Mother), £2,000,

and the Residue to the Widow absolutely.

Prepare a Distribution Account.

PROBLEM No. 14.

Solomon Solfar was a solemn man, and his Will was proved in solemn form. He died quietly in his bed on the 1st April, 1912, leaving a Widow, two Sons (Matthew and Mark), and one Daughter (Mary).

On the 1st April, 1913, after all Debts, Testamentary and other Expenses had been paid, the Estate consisted as follows:--

£6,000 2-3/4% Annuities at 76-5/8.

£2,000 Swansea Corporation 3% Stock at 83 (Interest payable 1st January and 1st July).

£6,000 London and North Western Consolidated 4% Stock at 103 (Dividends payable 15th February and 15th August).

1,000 Birmingham Small Arms Cum. 5% Preference Shares of £5 each at £5-1/4 (Dividends payable 1st March and 1st September).

£5,000 British Westinghouse 4% Debenture Stock at 63 (Interest payable 1st January and 1st July).

Mr. Solfar made during his lifetime advances of £500 to each of his Sons, which at his death were brought into Hotchpot, and interest charged thereon at 5% per annum. He directed his Estate to be left in Trust, the Income to be applied, first in payment of £75 a quarter to Mrs. Solfar, and the balance to be distributed half-yearly in equal shares to Matthew, Mark and Mary.

Write up the books of the Trust, ignoring Income Tax, for the year ending 31st March, 1914, the balance of Income in hand on 1st April, 1913 (after making all necessary payments to the beneficiaries) being £12 0s. 0d.

PROBLEM No. 15.

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 3-1/2% 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.

PROBLEM No. 16.

Mrs. Wiggins was the Life Tenant and Mr. Gilbert Gunter was the Remainderman of the Property left by the late Ebenezer Wiggins.

Mr. Gunter had begun to despair of ever enjoying the fruits of Mr. Wiggins' generous intentions, when, fortunately for him, on the 14th March, 1914, Mrs. Wiggins got a fish bone lodged in her gullet and died two hours later.

The Accounts had been prepared regularly on the 21st September each year, the anniversary of Mr. Wiggins' death, and the following is the Balance Sheet, dated 21st September, 1913:--

EBENEZER WIGGINS Decd.

Dr. Balance Sheet, 21st September, 1913. Cr.

£ s. d. | £ s. d. To Estate Account 33,900 0 0 |By Investments: " Income " 125 0 0 | India 3 per Cent.: | £25,000 at 72 18,000 0 0 | Chili 4 per Cent.: | £5,000 at 90 4,500 0 0 | London United | Tramways: | £10,000 4 per Cent. | Debentures at 70 7,000 0 0 | West African | Trading Co., Ltd.: | 1,000 Shares £1 | each fully paid 1,000 0 0 |" Freehold House 2,600 0 0 |" Furniture and | Effects 800 0 0 |" Cash at Bank 125 0 0 ------------ | ----------- £34,025 0 0 | £34,025 0 0

Mr. Gunter requires Accounts to be prepared, showing the position of affairs at the 14th July, 1914, and volunteers the following information:--

(1) The Investments remain unaltered, with the exception of the India 3% Stock, which was sold on the 10th January, 1914, and the proceeds, viz., £18,500, were invested in a Mortgage at 5% Interest payable half-yearly on the 10th July and 10th January each year.

(2) The Coupons on the Chili 4% Bonds are payable on the 1st April and 1st October, and the Interest on the London United Tramway Debenture Stock on the 1st January and 1st July in each year.

(3) On 3rd July, 1914, a Final Dividend at the rate of 15% per annum, free of Tax, was declared by the West African Trading Company, Ltd., and paid on the 8th July, 1914, making, with the interim dividend paid on the 10th January, 1914, 10% for the year ended 30th June, 1914, free of tax.

(4) The Freehold House was let on a full repairing lease at an annual rental of £146, the assessment was also £146. The rent is payable quarterly on the usual quarter days.

(5) The Trustees had paid to the late Mrs. Wiggins £75 on account of income on the 12th day of each month, including March, 1914.

(6) The Professional Accountant's fee for writing up the books from the 22nd September, 1913, to 14th July, 1914, and making the necessary adjustments was agreed at 100 guineas, and this fee was to be apportioned between Mr. Gunter and the Estate of Mrs. Wiggins deceased equally.

* * * * *

Write up the Accounts for the period, making the necessary adjustments, and prepare Balance Sheet dated 14th July, 1914, showing the amount due.

PROBLEM No. 17.

Mr. Montagu Summers had a conscientious objection to the Income Tax, and a positive loathing of the Super-Tax, and the trouble lay in the fact that he had amassed a considerable fortune in the City of London.

Something had to be done, however, to relieve Mr. Summers of a portion of this scandalous taxation, and so, converting as much of his property into cash as he could spare, he invested the same in various ways in other countries.

He bought Russian 4-1/2% Bonds in Holland of the nominal value of 200,000 Guilders, and a Freehold Farm near Amsterdam, which cost in English money about £8,000.

He bought Freehold Land in Canada, for which he paid £80,000, and deposited with the Calgary Investment & Security Trust $300,000 at 5%.

He lent on Mortgage in New Zealand £40,000, and he had a balance of Fcs. 8,600 to his credit at the Swiss Bankverein, Berne.

On the 14th November, 1913, Mr. Summers died of blood poisoning, the result of cutting a corn with a blunt razor.

His property in England consisted of his Furniture and Effects valued at £3,800, Cash balance at the London, City & Midland Bank, Queen Victoria Street, £300, and his interest as a Partner in the firm of Montagu Summers & Nephew, which was agreed at £32,640.

The Russian Bonds were sold on the Amsterdam Exchange for 180,000 Guilders, the Farm was valued at 112,800 Guilders, and the Land in Canada was estimated for duty purposes at $122,000.

Assuming the Death Duties in Holland to be 5%, in Switzerland nil, and the rates in the Colonies to be similar to what they are in this Country, show what Estate Duty would be payable in England.

The rates of Exchange can be taken as follows:--

Holland--12 Guilders = £1 Switzerland--25 Francs = £1 Canada-- 5 Dollars = £1

All accruing income to be ignored.

PROBLEM No. 18.

Mr. Harold Wimpole died in his Opera Hat, and was buried in Willesden Cemetery.

His Will had been proved, Estate Duty had been paid, and the Widow, who was the sole Beneficiary, had found considerable consolation in the £56,200 which had come to her.

This £56,200 represented the Gross Estate, less Debts due by Mr. Wimpole at his death £1,416, Funeral Expenses £39 17s. 0d. which were regarded by all, including the Inland Revenue Authorities, as most reasonable, Estate Duty, Interest on Estate Duty £31 16s. 0d., Testamentary Expenses £140 3s. 0d. and Legacy Duty.

Eight months had passed away and the rules of Society permitted Mrs. Wimpole to smile occasionally; the Curate, who took an extraordinary interest in Mrs. Wimpole's salvation and the carving of an ancient Japanese Cabinet, had called for tea. The Reverend gentleman, with a sandwich in his hand, was recording the incidents connected with the birth of Buddha, when his fingers happened to touch the spring of a secret drawer in the aforementioned Cabinet.

The Curate looked at the Widow, and the Widow looked at the Curate, and there they stood together, hand in hand, like two young children, in silent amazement, for the secret drawer in the Japanese Cabinet disclosed 25 4-1/2% Foreign Government Bonds to Bearer, of the nominal value of £500 each, and several memoranda of Stock Exchange dealings between Mr. Wimpole and his Broker. The coupons were payable on the 10th March, and the 10th September in each year, and the last coupon which had been cut off was dated 10th September, 1912, exactly 8 months previous to the death of Mr. Wimpole. Mrs. Wimpole consulted the Reverend Oscar Veritas long and earnestly over the matter, and the Reverend Oscar admitted that it was a case necessitating very great firmness of character and honesty of purpose. Ultimately, however, he arrived at the conclusion that Mrs. Wimpole would be unworthy to bear his name in the future, unless she did her duty in the present instance.

What was the pecuniary value of the good man's conclusions to the Inland Revenue in the matter of Estate and Legacy Duty, bearing in mind the fact that the Bonds stood at 92 on the day of Mr. Wimpole's death, and 90, ten months later when Mrs. Wimpole's Solicitor finally settled the matter?

* * * * *

Note.--The Honeymoon was spent in Japan.

PROBLEM No. 19.

Sir Robert Rushforth, J.P., was a big man with a big heart and a wooden leg. He had inherited a fortune, gone bankrupt, and married a Widow, and if anyone had told him he wasn't a sportsman he would have called that individual a liar, and opened a second bottle.

He died on the 4th June, leaving all his property to his Widow, with the exception of his wooden leg, which he directed to be handed over to the Royal Hospital for Incurables, at Putney.

Such was the man, and the contents of his Will so exactly reflected the character of her husband that Lady Rushforth at once had recourse to the smelling salts on reading the document.

He directed the debts, from which he had obtained a legal discharge in Bankruptcy, to be paid in full, he forgave all his Debtors, and instructed his Widow, whom he had appointed sole Executrix and Residuary Legatee, to meet in full all his Gaming Debts. He further directed that a certain debt, in respect of which he had pleaded in his younger days the Statutes of Limitation, should be paid in full.

The name of this latter creditor was Gunter, and the debt, amounting to £25, was in respect of repairs to certain pig-sties.

The discharge from Bankruptcy had been obtained by Sir Robert eight years previous to his death. His liabilities had amounted to £16,200, and he had paid 2s. 6d. in the £.

He owed his bookmaker, Mr. Hollins, of Houndsditch, £200.

He had lent his Vicar, the Rev. Aaron Cranium, £100, his sister Blanche £300, and his intimate but impecunious friend, Mr. Algernon O'Gizzard, £50. This latter loan was rendered necessary by reason of the fact that Mr. O'Gizzard had stood bail for a friend who had got into trouble with the police, and who failed to put in an appearance before the Magistrates on the day appointed. Now, Sir Robert happened to be on the Bench that morning, and ordered the bail to be estreated before he realised with whom he was dealing.

Apart from the above property Sir Robert left Personal Estate valued at £62,000. There was no Real Property.

Show what Estate Duty and Legacy Duty were payable upon Sir Robert's death.

* * * * *

Note.--The wooden leg was returned by the Secretary of the Royal Hospital for Incurables at Putney, and being found to be of no intrinsic value was eventually deposited in the family Mausoleum at Norwood.

PROBLEM No. 20.

Mr. James Hotchkiss died in the autumn of age on the morning of his 93rd birthday.

During his protracted life he had always surrounded himself with every comfort, and was reputed to be an exceedingly rich man.

No wonder then that his death should occasion an unparalleled outburst of grief and hatbands on the part of his weeping relatives.

After the funeral, the chief mourners met in the library and the Family Solicitor, with a glass of wine within easy reach, read out the last Will and Testament of James Hotchkiss Deceased.

This interesting document brought a ray of comfort to bleeding hearts, for several substantial Legacies were mentioned, all free of duty, and two at least of the prospective Legatees were observed to make rapid calculations on the left shirt cuff.

To Sophia Hotchkiss ("my own dear Wife") the deceased left his Horses, Carriages, Motor Car, Household Furniture, Pictures, including the Landscape by Earp, Linen, Plate, Glass, &c., absolutely.

To George Proudfoot ("my dear sister's only son") the deceased left his Hornèd Cattle, i.e., Cows, and £20,000.

To Rachel and Joyce Proudfoot ("my sister's little girls"), the deceased bequeathed £10,000 each. The Misses Proudfeet were aged 32 and 27 respectively.

To Richard, William and Algernon Hotchkiss ("my never-to-be-forgotten brother's sons") the deceased left £20,000 each, and to John Willett ("my faithful valet"), £2,000.

The Residue of the Estate was bequeathed absolutely to the Widow.

The Executors lost no time in having the Property valued and the debts due by the deceased at his death, ascertained, and their efforts disclosed "a very lamentable state of affairs," at least, such was the opinion expressed by the Reverend Stephen Collins who had called to comfort the Widow in her affliction.

The Horses, Carriages, Motor Car, &c., including the Landscape by Earp, were valued at £2,000; the Hornèd Cattle, i.e., the Cows, were put down at £400, and the rest of the Property at £40,893 16s 0d.