Public Trustee (New Zealand)
Encyclopedia
The Public Trustee of New Zealand was a government appointed corporation sole
providing Trustee services to those unwilling to use private services, or required by the courts or legislation to use the Public Trustee. From 2001 the Public Trustee of New Zealand ceased to be a corporation sole, adopting a structure similar to a company as a “crown entity”, and was renamed Public Trust, (a name under which the Public Trustee had been trading for some years). It administers 50,000 estates, trusts, funds and agencies.
, where, mortality was high, literacy low, the population mobile, but travel and communications difficult there were problems getting reliable volunteers to be Trustee
s, that is to look after assets, (usually an estate
where the beneficiaries
are minor
s).
Similar problems occurred in Australia, where in 1860 George Webster
, now a New Zealand member of parliament had attempted to found a state trustee in Victoria.
In 1870 when the country was less than 30 years old, a member of Parliament, Edward Cephas John Stevens
, suggested a state backed trust to colonial treasurer Julius Vogel
, during a casual conversation about a case where a private trustee had embezzled money. The pair were apparently unaware of Webster’s earlier proposal.
Vogel was a keen promoter of state involvement in business, having founded State Insurance
in 1869. He introduced the Public Trustee Bill to Parliament on 28 July 1870. The bill was passed by the house of representatives, but defeated in the legislative council, (New Zealand’s then upper house), by three votes.
In 1871 Vogel drafted an amended bill, removing two criticised aspects; the ability of the Public trustee to act under a power of attorney and the government guarantee, (both of which were soon reintroduced), and provision for closer supervision of the Public Trustee was included. The bill was presented to the house on 23 July 1872. Again it was heavily criticised in the upper house, where opposition was organised by Henry Sewell
, who by the time of its final reading was Colonial Secretary
.
Sewell described the idea as "one of the most extraordinary that ever entered in to the imagination of any persons out of the limit of those buildings which were appointed for the custody of persons not able to take care of their own property". Ironically, the bill was then amended to place mental patient’s estates in the hands of the public trustee.
The electorate was mobilised in support of the bill, notably by Anglican and Presbyterian churches, and Sewell himself lost his position nine days after the final debate, when the Stafford
government was ousted by Waterhouse
. The Public Trust Act passed into law on 25 October 1872.
During the first year the main business of the Public trustee was with intestate estates – that is, people who had died without leaving a will
(234 of the 314 estates administered in 1873). This was not a matter considered by the Public Trust Act, and an amendment was introduced in September. A further amendment on 1 November required life insurance companies to deposit security with the Public Trustee. On the same day, Woodward also acquired his first employee, having previously done all tasks in the office himself. By 1876 the office was self funding, in 1877 the second employee (an untrained cadet) joined the office. By 1878 the Public Trustee was administering 1432 estates. In that year Jonas Woodward handed over his responsibilities as Commissioner of the Government Life Insurance office and Major Charles Heaphy
V.C. Woodward retired on reaching 70 on 1 May, (although as his successor Robert Hammerton was unable to start until July 8, he continued to work on without salary until 8 July).
Corporation sole
A corporation sole is a legal entity consisting of a single incorporated office, occupied by a single man or woman. This allows a corporation to pass vertically in time from one office holder to the next successor-in-office, giving the position legal continuity with each subsequent office...
providing Trustee services to those unwilling to use private services, or required by the courts or legislation to use the Public Trustee. From 2001 the Public Trustee of New Zealand ceased to be a corporation sole, adopting a structure similar to a company as a “crown entity”, and was renamed Public Trust, (a name under which the Public Trustee had been trading for some years). It administers 50,000 estates, trusts, funds and agencies.
Origins 1870-1873
In early New ZealandNew Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
, where, mortality was high, literacy low, the population mobile, but travel and communications difficult there were problems getting reliable volunteers to be Trustee
Trustee
Trustee is a legal term which, in its broadest sense, can refer to any person who holds property, authority, or a position of trust or responsibility for the benefit of another...
s, that is to look after assets, (usually an estate
Estate (law)
An estate is the net worth of a person at any point in time. It is the sum of a person's assets - legal rights, interests and entitlements to property of any kind - less all liabilities at that time. The issue is of special legal significance on a question of bankruptcy and death of the person...
where the beneficiaries
Beneficiary (trust)
In trust law, a beneficiary or cestui que use, a.k.a. cestui que trust, is the person or persons who are entitled to the benefit of any trust arrangement. A beneficiary will normally be a natural person, but it is perfectly possible to have a company as the beneficiary of a trust, and this often...
are minor
Minor (law)
In law, a minor is a person under a certain age — the age of majority — which legally demarcates childhood from adulthood; the age depends upon jurisdiction and application, but is typically 18...
s).
Similar problems occurred in Australia, where in 1860 George Webster
George Webster (New Zealand politician)
George Webster was a 19th century Member of Parliament from Southland, New Zealand.He represented the Wallace electorate from 1869 to 1875, when he died....
, now a New Zealand member of parliament had attempted to found a state trustee in Victoria.
In 1870 when the country was less than 30 years old, a member of Parliament, Edward Cephas John Stevens
Edward Cephas John Stevens
Edward Cephas John Stevens MLC was a New Zealand politician in provincial government in Canterbury, and a member of both the lower and upper houses of parliament. A businessman, he controlled the Christchurch Press for many decades...
, suggested a state backed trust to colonial treasurer Julius Vogel
Julius Vogel
Sir Julius Vogel, KCMG was the eighth Premier of New Zealand. His administration is best remembered for the issuing of bonds to fund railway construction and other public works...
, during a casual conversation about a case where a private trustee had embezzled money. The pair were apparently unaware of Webster’s earlier proposal.
Vogel was a keen promoter of state involvement in business, having founded State Insurance
State Insurance
State Insurance is an insurance company based in New Zealand. "State" serves as a brand of IAG New Zealand Limited, a subsidiary of Insurance Australia Group.-History:State Insurance was formerly known as the State Insurance Office...
in 1869. He introduced the Public Trustee Bill to Parliament on 28 July 1870. The bill was passed by the house of representatives, but defeated in the legislative council, (New Zealand’s then upper house), by three votes.
In 1871 Vogel drafted an amended bill, removing two criticised aspects; the ability of the Public trustee to act under a power of attorney and the government guarantee, (both of which were soon reintroduced), and provision for closer supervision of the Public Trustee was included. The bill was presented to the house on 23 July 1872. Again it was heavily criticised in the upper house, where opposition was organised by Henry Sewell
Henry Sewell
Henry Sewell was a prominent 19th century New Zealand politician. He was a notable campaigner for New Zealand self-government, and is generally regarded as having been the country's first Premier, having led the Sewell Ministry in 1856.-Early life:Sewell was born on 7 September 1807 in the town of...
, who by the time of its final reading was Colonial Secretary
Colonial Secretary (New Zealand)
The Colonial Secretary of New Zealand was an office established in 1840 and abolished in 1907. The position should not be confused with the Colonial Secretary of the former Colonial Office of the United Kingdom....
.
Sewell described the idea as "one of the most extraordinary that ever entered in to the imagination of any persons out of the limit of those buildings which were appointed for the custody of persons not able to take care of their own property". Ironically, the bill was then amended to place mental patient’s estates in the hands of the public trustee.
The electorate was mobilised in support of the bill, notably by Anglican and Presbyterian churches, and Sewell himself lost his position nine days after the final debate, when the Stafford
Edward Stafford (politician)
Sir Edward Stafford, KCMG served as the third Premier of New Zealand on three occasions in the mid 19th century. His total time in office is the longest of any leader without a political party. He is described as pragmatic, logical, and clear-sighted.-Early life and career:Edward William Stafford...
government was ousted by Waterhouse
George Marsden Waterhouse
George Marsden Waterhouse was a Premier of South Australia from 8 October 1861 until 3 July 1863 and the seventh Premier of New Zealand from 11 October 1872 to 3 March 1873.-Early life:...
. The Public Trust Act passed into law on 25 October 1872.
The First Public Trustee 1873–1880
Jonas Woodward, a 62 year old former banker, auditor and high ranking civil servant, was appointed the first Public Trustee gazetting the functions of the office on 30 December 1872 and starting on the job on 1 January 1873. It was initially considered a part time job, and made up only a quarter of his salary.During the first year the main business of the Public trustee was with intestate estates – that is, people who had died without leaving a will
Will (law)
A will or testament is a legal declaration by which a person, the testator, names one or more persons to manage his/her estate and provides for the transfer of his/her property at death...
(234 of the 314 estates administered in 1873). This was not a matter considered by the Public Trust Act, and an amendment was introduced in September. A further amendment on 1 November required life insurance companies to deposit security with the Public Trustee. On the same day, Woodward also acquired his first employee, having previously done all tasks in the office himself. By 1876 the office was self funding, in 1877 the second employee (an untrained cadet) joined the office. By 1878 the Public Trustee was administering 1432 estates. In that year Jonas Woodward handed over his responsibilities as Commissioner of the Government Life Insurance office and Major Charles Heaphy
Charles Heaphy
Major Charles Heaphy VC was a New Zealand explorer and a recipient of the Victoria Cross, the highest and most prestigious military award for gallantry in the face of the enemy that can be awarded to British and Commonwealth forces....
V.C. Woodward retired on reaching 70 on 1 May, (although as his successor Robert Hammerton was unable to start until July 8, he continued to work on without salary until 8 July).