Parties.
Recitals.

Title of parties.

Agreement.

Witnesseth.

License.

As to

release of restrictive covenants.

V.

LICENSE by tenant for LIFE to OWNER in fee of adjoing land to BUILD on and Use a plot of ground contrary to RESTRICTIVE COVENANTS (a).

PARTIES, A., tenant for life, 1; B., owner in fee of adjoing land, 2. Recite convce by X., A.'s predecessor in title to Y., B.'s predecessor in title, of land subjt to restrictive covts, settg out those wch are to be modified: AND WHAS the sd A. is now, under the will of the sd X., tenant for life in posson of the este, late of the sd X., adjoing the land comprd in the sd convce to the sd Y. AND WHAS by an indre, &c., the land comprd in the sd convce to the sd Y., was conveyed to & is now vested in the sd B. in fee simple: AND WHAS the sd B. has reqted the sd A. to permit the eron & maintce of bldgs, &c., &c., upon the plot of ground hinafter mentd formg pt of the last-mentd land, & the user of such plot & the bldgs thron as & for, &c., AND WHAS the sd A. has consented to grt such license on the condons & subjt to the restrons hinafter contd: NOW THIS INDRE WITNETH that in conson of the agrmt on the pt of the sd B. hinafter contd, the sd A. as such tenant for life as afsd (but not so as to imply any covt or warranty except as to his own acts) doth hby grt unto the sd B., his hrs & assns, FULL license & permission to erect & for ever hrafter to maintain & continue upon the plot of ground situate, &c., containg, &c., delineated & edged red upon the plan drawn in the margin of these psnts, a messe & bldgs, &c., &c. And also full license & permission for ever hrafter to use the sd plot of ground & the messe & bldgs to be erected thron as afsd as & for, &c., premes not to be used so as to cause nuisce, &c. (b), see p. 292, but for no other ppose whatsr, Upon condon nevs, &c., &c.,

(a) As to restrictive covenants, see p. 285, note; and as to the power to release or waive such covenants, see p. 286, note. In case of a doubt as to whether a tenant for life has power so to do, so as to bind the remainderman, words excluding any possible implication of a covenant or warranty are inserted. This precedent takes the form of a license instead of a release, as it is subject to conditions. As to who can give a license in the case of a building estate, see Everett v. Remington, [1892] 3 Ch. 148.

(b) See White v. Jameson, 18 Eq. 303.

PROVD ALWAYS, &c., that except so far as the same is hby Proviso. varied the sd indre of convce of, &c., & the restrictive covts & provons thrin contd shl remain in full force & effect. IN WITS, &c.

VI.

LICENSE by LORD of MANOR to Copyholder to make a
DEMISE for twenty-one years.

do hby give you license to demise [--, being pt of] the copyhd messe, farm, & hds, known as situate at, &c., to

day of

wch you were admitted tenant at the will of the lord, accdg to
the custom of the sd manor, out of Ct on the --
to K., of, &c., his exs, ads, & assns, for a term of 21 yrs
to be computed from

AS WITS my hand this

day

of

VII.

LICENSE by Trustees of a strict SETTLEMENT of a MANOR
to Copyholder to DEMISE for Ninety-nine years, with
PROVISO Fixing the Annual Suм upon which the FINES
are to be Assessed during the term (b).

Manor of, in the
in the

Coy of

WE, A., of, &c., & B., of, &c., the trees of the manor of

in the coy of - do hby by virtue of a power vested in us by an indre dated, &c., & of every or any other power in this behalf us enablg, grt license to C. of, &c., one of the copyhd tenants of the sd manor, to demise the copyhd tenemt known

Power of tenants for

(b) Under the Settled Land Act, 1882, s. 14, a tenant for life or other life to limited owner (see s. 58) may now grant such a license as this, which must grant be entered on the Court rolls (s. 14 (3)); and see also the Settled Estates Act, 1977, s. 9.

licenses to

copy

holders.

to wch he the sd C. was admitted tenant at the will

day of

of the lord accdg to the custom of the sd manor at a Ct holden on the to K., of, &c., his exors, ads, & assns, for bldg pposes for the term of ninety-nine yrs from the day of next so that during the same term the sum of £shl be considered as the annl value for assessg the fines payable to the lord of the manor upon the admission of any new tenant to the sd tenemt, AND so that this license shl be entered on the Ct Rolls of the sd manor within six calr months from the date hrof orwise the same shl be void reservg nevs unto the lord all fines, heriots, rents, customs, & services due & to grow due in respt of the sd tenemt. As WITS Our hands this day of

NOTE ON ESTATE DUTY ON REVERSIONARY INTERESTS.

First. Take the case of a legacy, or share of residue given to A. for life with remainder to B. absolutely.

If the testator died before the 2nd August, 1894, probate duty will have been paid in respect of his personal estate situate in the United Kingdom at the time of his death, or on the high seas at that time and first reduced into possession in the United Kingdom, Att.-Gen. v. Pratt, L. R. 9 Ex. 140; it follows that if the legacy is wholly payable out of property of this nature no estate duty will be payable in respect of it on the death of A. (Finance Act, 1894, s. 21). But if the whole or any part of the legacy is payable out of the proceeds (whether arising by sale or mortgage) of freehold or copyhold land devised by the testator or out of foreign assets the case is different, no probate duty will have been paid in respect of it on the death of the testator, and therefore estate duty will be payable, in respect of the whole or part, as the case may be, of the legacy on the death of A. As the proceeds of land do not pass to the executors as such, the estate duty on such part of the legacy as arises in this manner will be a charge on the legacy, s. 9 (1). Foreign assets appear not to pass to the executor as such within the meaning of the Act; for an executor includes an administrator, see s. 22 (1) (d), and an administrator is a mere officer of the Court, so that foreign assets do not pass to him as such, and it appears impossible to suppose that the question whether estate duty in respect of foreign assets is to be a charge on them or not is to depend upon whether the deceased died intestate or testate, therefore the better opinion appears to be that the estate duty payable in respect of foreign assets is a charge on them. No settlement estate duty can be payable (Finance Act, s. 21 (4)).

Second. If the testator died after the 1st August, 1894. Here estate duty is payable on all his estate, possibly settlement estate duty may be payable in respect of the legacy. Any part of the legacy which arises from the sale or mortgage of freeholds or copyholds devised by the testator or from foreign assets will be charged with estate duty, and if settlement estate duty is payable it will be a charge on the legacy if the estate duty is a charge, but not otherwise, Re Webber, W. N. 1896, 38; [1896] 1 Ch. 914.

Third. Next take the case of personalty settled before the 2nd August, 1894, in trust for A. for life, remainder to B. for life, remainder to C. absolutely. Let A. die before 2nd August, 1894, estate duty will be payable on the death of B., unless account duty was payable on A.'s death, in which case the property in respect of which the account duty was paid is exempt, Finance Act, 1894, s. 21 (1). This exemption may for some time to come be occasionally a matter of some importance. If A. dies after the 1st August, 1894, the result will be the same as in the following case, except where A. and B. are husband and wife and A. takes the 1st life interest in property settled by B., in which case duty is not payable on the property so settled till the death of B. (Finance Act, 1894, s. 21 (5)), and that settlement estate duty cannot be payable.

Fourth. Where personalty is settled after the 1st August, 1891, estate duty and possibly settlement estate duty will be payable on the death of A., and no such duties will be payable on the death of B.

In both the third and fourth cases the estate duty (and settlement estate duty if any) will be a charge on the corpus.

879

880

ESTATE DUTY ON REVERSIONARY INTERESTS.

Fifth. The intricacies of strict settlements are such that it is impossible to give more than a very simple example. Suppose that the property is settled on A. for life with remainder to his eldest son B. for life with remainder on B.'s eldest son C. in fee. Subject to jointures to the wives of A. and B. and to charges for portions for their younger children. On A.'s death estate duty becomes payable, a proportionate part being charged on his widow's jointure and the portions for his younger children. Settlement estate duty is also payable on the jointure of A.'s wife; and on the value of the property after deducting the portions and jointure. No further estate duty will be payable on B.'s death.

A purchaser of a reversion must in all cases consider whether any estate duty has become payable at the date of his purchase. If this is the case he must not be satisfied with a receipt for it, he must require the production of a certificate of discharge under Finance Act, 1894, s. 11, which by subs. (4) exonerates a purchaser for value without notice. If duty will be payable on the falling in of the reversion, it must be remembered that it impossible to know at what rate the duty will be charged, as the property has to be aggregated with the other property passing on the death of the deceased except in the case mentioned in the Finance Act, s. 4.