6. AN ANNUITY TO BE HELD FOR A CERTAIN TERM OF YEARS. I direct my executor to pay, out of the rent of my leasehold house in Portland Place, unto my nephew, George Manners, his executors or administrators, a clear annuity of fifty pounds, during all the residue of my term therein, the same to be paid by half yearly payments, as the rent shall fall due. The age of the annuitant is not an ingredient in the calculation of the value of this annuity, but its value is to be ascertained by table No. 3 (in the Appendix), which relates to annuities for years certain and supposing, therefore, that the testator, at his decease, was possessed of an unexpired term of thirteen years in the leasehold house, out of the rent of which the annuity is directed to be paid, the value of the annuity of fifty pounds, for a period of thirteen years, will be found to be four hundred and ninety-nine pounds, five shillings. The following is the form of receipt in this case: The annuity is directed to be Amount of paid to the above-named annui- the 1st year's In this space insert any tant, his executors, &c., out of the Annuity.... 50 00 special matter rent of a leasehold house, in Port- Allowed the land-place, held by the testator 1st Payment necessary to explain the mode in which the Annuity is given. for a term, of which 13 years were of Duty.... 31410 unexpired on the 25th of March last, for and during the remainder Balance recd 46 5 2 of such term. (B)Or Retained Received (B) the 7th day of April, 1835, the sum of in trust. (A) Or Real. forty-six pounds, five shillings and two pence, in full of the first year's payment of my annuity, out of the personal (A) estate above mentioned, due the 8th day of January, 1835. The foregoing are all the rules prescribed by the act of parliament for the valuing of annuities; but as many other varieties frequently occur in wills, the commissioners have obtained from the actuaries of Life Insurance Offices, and other competent persons, certain rules for the guidance of their own officers, in the assessment of duties on annuities. These rules chiefly apply to annuities given in joint-tenancy, and will be shewn and explained in commenting on the 18th section of the act. With reference to the clause now under consideration, it is sufficient to mention, that in annuities for the joint continuance of several lives, every additional life diminishes the value of the annuity, while in annuities for the longest of several lives, every additional life gives the annuity a greater value. The calculation of the exact amount of the decrease or increase in respect of each additional life is exceedingly intricate and laborious; but for most practical purposes it is unnecessary; and especially so for the purpose of assessing the legacy duties, which never exceed 1-10th, and are often only 1-100th of the sum in question. Having made the calculation, (in any case of annuities for the longest of several lives) of the value for the three youngest lives, the addition of a sum, amounting to five pounds per cent. on the annuity (that is to say, adding five pounds to the value, where the annuity is one hundred pounds per annum, and so on in proportion) for every life beyond the three, will give an approximation to the true value, near enough for the calculation and payment of the duty. In respect to annuities for the joint continuance of lives, there is no general rule which can be laid down; but every case must be treated according to its peculiar circumstances. There is, however, one rule, not contained in the act, but adopted at the Legacy Duty Office, of which the example comes properly in this place, and will be found in the next bequest. 7. A REVERSIONARY ANNUITY, OR ANNUITY TO COMMENCE ON THE EXPIRATION OF A LIFE NOW IN BEING. I give and bequeath to Rachel Holborrow, for her life, an annuity of twenty-five pounds; but the same is not to commence until the decease of her uncle, Timothy Holborrow. The rule for valuing this description of annuity, is to subtract from the value of the annuity, according to the age of the life in expectation, by table No. 1, the value of the annuity for the joint lives, by table No. 2, and the remainder will be the present value of the reversionary annuity. It is proper to state that the immediate payment of legacy duty on any description of reversionary bequest is not demanded by the commissioners; but if parties choose to pay it, in anticipation of the event, and the present value be a subject of calculation, the commissioners, will always accept the duty, Suppose the age of Rachel Holborrow to be thirty, and that of Timothy Holborrow to be sixty, then the value of the annuity is as follows: Value of £25 per annum, for a life aged 30, by table No. 1....... The value of an annuity of £25, for the joint continuance of two lives, aged 60 and 30, by table No. 2, £195 1$....... The remainder is the present value of the annuity in reversion ... £369 10 6 195 1 0 £174 9 6 As this differs from the ordinary case of annuity, the full duty is to be paid at once, instead of by instalments; and there being no payment to the annuitant, the form of receipt will be struck out, and a declaration in lieu thereof made by the executors, in the following form: viz. In this space insert any special matter necessary to explain the mode in which the Annuity is given. (A) Or Real. Value of the Annuity for the life aged 30 £369 10 6 Remainder being the value of the 195 1 0 £174 9 6 We hereby offer to pay to the Commissioners of Stamps, the sum of seventeen pounds, eight shillings and eleven pence, for the duty on the present value of the reversionary annuity out of the personal (A) estate above mentioned, this 18th day of August, 1834. (Signed) RICHARD MANNERS, EDWARD MANNERS.Executors. 8. AN ANNUITY DETERMINABLE UPON A CONTINGENCY, BESIDES THE DEATH OF ANY PERSON. I give and bequeath to George Dickson, of Weybridge, one annuity of two hundred pounds, to be paid to him out of the residue of my personal estate, during his natural life, or until he shall become seised in possession of Annesley estate, under and by virtue of the limitations thereof, contained in his marriage settlement, in which case the annuity shall cease. By the 8th section (now under consideration) the value of an annuity determinable upon any contingency, besides the death of any person, is to be calculated without regard $9th. to such contingency, and the duty to be charged and paid thereon, in the same manner as on any other annuity. And should the contingency happen, so much of the duty will be returned, as will reduce it to the duty on the value of the annuity, calculated according to the time for which it shall actually have endured. The executors, therefore, would value the annuity for the life of George Dickson, and pay duty thereon, as in the case of the simple annuity (No. 1), and the form of the receipt would be the same. But if, at the end of seven years, the annuitant should come into the possession of the estate mentioned in the bequest, and the annuity should thereupon cease, the executor will have to claim, on behalf of the annuitant, a return of a portion of the duty, which is to be calculated as follows: viz.— Value of the annuity of £200, for the life of George Dickson, aged 19.... £3233 8 0 Duty thereon, at £10 per cent.. Value of an annuity of £200, for a period of seven years certain, by table No. 3 1200 8 0 £323 6 9 120 0 9 Duty to be returned. . . . . . £203 6 0 Section 9 provides that an annuity, directed to be paid out of another legacy, shall be valued and charged with duty, in exactly the same manner as any other annuity; and the duty on the legacy shall be calculated and charged, after deducting therefrom the value of the annuity; and it further provides that the duty on the annuity shall be paid by the person to whom the legacy shall be given. An annuity charged on another legacy obviously required some special provision, with respect to the person on whom the responsibility for the payment of the duty should fall. This case, therefore, very properly forms an exception to the general rule in section 6th, by which executors are made the responsible parties; for here the executor parts with the possession of the fund immediately, and the duty on the annuity may be paid by four annual instalments: the act, however, immediately substitutes the legatee, (to whom the fund is paid over), for the executor, as the person who shall account |