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[{__£s;gg%::f GM f>\“%m, 92¢” nu.‘ J V4, ,.//aw '1»-5 !"iM~ ‘”3C''" is; '€"‘ik~»~& WW1») 6h&9.~.) MS (:2 sf. 1’.§%-J-ayf-é, C xéj-:~:~«; Ki zza 5.» W10?‘ Jig‘ O I ‘ ,, "fi_,.! SF» ixsgasi 1.‘: 2.3 . 3 3 W‘ ‘V’ ’ \ ‘ I ,. 7’ Lag: Ifib? x. s“=‘L-*-axjbl‘ 51..-.»‘f'{14I..t"? 2 ,7. U«n'5‘3"*I< 9’ % 5; (33?) yhj via *4‘ “'“‘T"""""""""° \j L434 N-.7 gages =.1—2g:"'7 0 é_lO0;‘JU° 92-.» "7'~»--xi” (51 ‘C[\_fc* 1...; _r*~t..q,,._‘.[-, EH (2539 B l‘\_A,u’\’f‘§-‘¥ ‘D rwa '“‘* H 1-§k*‘:'>{‘~=,'1(,-—‘f’\....¢- _ % ‘”‘**.«.» L»?- {;L eve cL3=5~'?'—~ F :h‘~..§<€..,F V?‘-H 5;‘. I“ {J *=‘-.,-L‘ 6’! §3€Aa'z,{{(E -;‘?1=v5*L"*\ L £2 q H... c As':? S§i‘“"”‘ $3,951 ‘I. 1" -— f..i¥3f; a ' National Library of Ireland MS 35422 (11) THIRD ITEM Dated August 1935. Marquis Conyngham deceased. Kent Estates. Succession Duty. The Estate Duty Office have sent a notification of the duty which became payable in respect of the succession of the infant Earl of Mountcharles to the Kent Real Estates and the Personal Estate. The total with interest comes to £5565 0. 10d. John Francis Ainsworth was entitled to the income from the Estates as from the death of the Marquis on November 9th, 1918. His interest ceased on March 13th, 1924, when the infant Earl was born. The former trustees paid the succession duty in respect of John Francis Ainsworth’s interest, such duty being based on the capital value of his interest calculated according to his age. A refund for overpayment after John Francis Ainsworth’s interest ceased has been taken into account in the present assessment. The District Valuer and Mr. Elgar have agreed the value of the Kent Real Estate at £170,000 which includes £5000 for timber and £10,000 for mines and minerals. Duty is not being paid on the timber until it is sold; so deducted from the £170,000 making £165,000 chargeable to duty subject to further deduction in respect of the mortgages and annuities which are liabilities in the estate. The original settlement was £203,192 which was reduced by £33,192 after considerable argument. The Succession Duty now payable is Agreed value of the Kent estate (less timber) £165,000 0. 0d Less mortgages as on 13. 3. 1924 £52,800 0. 0d Less Estimate of the capital value of the 5 annuities £13,972 17. 0d Sum which at 5% would produce the £190 17. 0d paid by the former Trustees for duty on JFA’s interest £3,817 0. 0d £94,410 3. 0d Revenue deduct also £9557 14. 8d deficiency in the Personal Estate as on 13. 3. 1924 from this -9557 14. 8d £84,852 8. 4d Succession duty of 5% —> £4242 12. 5d. Now add interest on this assessed duty from the date, 13.3.1924, when the claim first arose (less the period when the Estate Duty Office had the Account for assessment) = £1322 8. 5d. The total now payable is £5565 0. 10d. Legacy Duty This would ordinarily have been assessed on the Personal Estate on 13.3.1924 but owing to various deductions for debts, expenses and the fact that the majority of the “personal effects” are at Slane castle, the Personal Estate shows a deficit of £9557 14s. 8d. which has been deducted from the Value of the Kent Real Estate. Interest on Succession Duty As between the life tenants and the remainderman, the interest on this duty is payable out of income. However, the interest is so large that if £1322 8. 5d. were thrown on the current year’s income it would seriously affect the payment of the various annuities. It is suggested that the Trustees pay the interest out of capital in the first instance, spread the liability on the Trust Income over a period of, say, four years and recoup the capital out of the surplus income in each of these four years. The snag is that through unforeseen circumstances apart from the initial loss of income on £4242 12. 5d. future income may never be in a position to repay to capital the sum of £1322 8. 5d. and therefore it might be better for the Trustees to be protected by the Opinion of Counsel on this point. Interest is offset by the receipt of the rents of the Estate since that date — or if the Trustees now mortgaged the Estates to raise the duty, by the saving since that date of the mortgage interest which would have been at a higher rate than that charged by the revenue for interest. The Succession Duty is also charged on John Francis Ainsworth at the 5% rate hence the £190 17. 0 is calculated on this basis. Until paid, 3% interest accrues. Proposals The Trustees invested the proceeds of parts of the Kent Estate in 1933 in Australian 31/2% Stock 1937-1938. This was bought at 997/3 and now stands at 1021/2 and would realise a sum of about £1375. The remainder could be raised by the Trustees by sale or mortgage of the Kent Estate but this would probably take 3 or 4 months to complete. While the interest is unpaid the rents are still coming in but now that it has been assessed it ought to be paid as soon as possible as the Revenue will not be disposed to wait too long for it. If a mortgage must be raised to find the balance, now is a good time because money is so cheap. Or Mr. Elgar could be asked to find a buyer for enough of the Kent Estate to clear off the balance of the Succession Duty and interest in a reasonable time. Pending this, Trustees may be able to give a general charge on the estates to their bankers without expense and lengthy formalities of investigation of title, preparation of a mortgage deed and valuation by a valuer. When this large sum is paid, there will be a serious reduction in the yearly income. Presently there are 4 mortgages totalling £44,670 on which interest is payable at 414%. If one had one new mortgage one could combine these and the expenses involved. New money is available at 334% for 10 years. The Will allows the Trustees to do this. Legal and surveyors’ fees would be heavy. In time about £223 per year would be saved on mortgage interest amounting to at least 2 years’ saving overall. Each Mortgagee would probably want 6 months notice. The dates of repayment would have to be simultaneous with the taking up of the suggested new loan. The infant earl attains the age of 21 on 13.3.1945. 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