" (3) The provisions of this Section shall apply in like manner as to the public trustee to any banking or insurance company or other body corporate entitled by rules made under this Act to act as custodian trustee, with power for such company or body corporate to charge and retain or out of the trust property fees not exceeding the fees chargeable by the public trustee as custodian trustee." From the last subsection it is seen that a banking company entitled by rules made under the Act may act as custodian trustee.
Rule 36 of the Public Trustee Rules is as follows :— (1) The bodies corporate entitled to act as Custodian Trustee shall be any incor porated Banking or Insurance or Guarantee or Trust Company or Friendly Society, and any such body corporate established for charitable or philanthropic purposes as may be approved by the Public Trustee and the Treasury.
" (2) The Public Trustee may require pay ment by any applicant for such approval of a fee not exceeding ten guineas.
" (3) Such approval may be granted sub ject to such conditions as to the rendering of the body corporate, and verification, of periodical returns of business transacted, and fees and other emoluments received, and otherwise, as the Treasury may require either generally or in any particular case.
" (4) Any such approval may at any time be withdrawn without reason assigned." In a paper read before the Institute of 1 Bankers by the Public Trustee in 190S, he said with reference to the appointment of custodian trustee as a custodian for the property and securities, leaving the manage (These are half the fees payable where the Public Trustee acts as an ordinary trustee.) On withdrawal of any capital, a fee is chargeable at a rate equal to the rate per D 00 at which the fee upon the acceptance of the trust was payable in respect of the entire trust property. Where the Public Trustee acts as an ordinary trustee the fee due upon acceptance of an estate valued at /10,000 is ,(30, produced by an all round rate of 6s. per 1100, but where he acts as a custodian trustee the fee payable is half that amount—namely, 3s. per £100—and that rate applies also to a banking company acting as custodian trustee.
The Income Fees chargeable by a custodian trustee are : Upon the annual income of the trust property, at the rate of 1'2 per 1100 upon all income not exceeding 1500 a year.
Where the income exceeds a year, per ,S,100 is payable on such excess.
Where the income is payable direct to the person entitled, or to his bankers. the fee will not exceed D per ,S100 throughout. (Minimum fee, 2s. 6d.) The Investment Fees are : Any investment in stocks, funds, shares, 10s. per cent. (which includes brokerage) on the sum invested.
Any purchase or sale of land, or any ment of the trust to other trustees, " His duties under this provision will, however, in my opinion, be somewhat difficult to define, as it appears to me that to be a proper custodian in a trust you must exercise your discretion, for example, as regards invest ments and also supervise the administration of the trust generally, though not actually taking part in the management, and the line will not be easily drawn between custodian and managing trustee." In a pamphlet issued by the Public Trustee the scale of capital fees ordinarily charge able in the case of a custodian trustee is as follows (minimum fee 10s. 6d.) :— investment by way of mortgage or charge, 2s. Gd. per cent. on the purchase money or money advanced.
Where the trust consists of landed pro perty settled in strict settlement, the fee on acceptance is as above. No further fee is payable so long as the property, remains in strict settlement or is re-settled.
If the trust is put an end to, then a fee on withdrawal of the property will be due.
(See under PUBLIC TRUSTEE for further information regarding fees and the duties of a custodian trustee.) The Public Trustee, in his own capacity as custodian trustee or ordinary trustee, may employ. for the purposes of any trust, such bankers as he may consider necessary. He will, however, whenever practicable. take into consideration the wishes of the creator of the trust and any other trustees there may be, and of the beneficiaries. In such a case the position of the banker is merely that of the usual one with a customer. In the pap:r by the Public Trustee, above referred to, he said : "In the case of bankers, it will be the practice of the department not to disturb the connection between the settlor or testator and his banker, and I propose to ask, in such cases, the bank to continue the account in the name of the Public Trustee." (See PUBLIC TRUSTEE, TRUSTEE.)