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the purchase-money of a particular estate to discharge part of the principal sum due to a mortgagee upon his joining in the conveyance to the purchaser. And in order to effect the sale, all deeds and writings relating to the estates in the custody or power of the committee or of any other persons, were to be produced before the Master, as he should direct; who was also ordered to settle a sum as a reserved bidding for the estates, in order to prevent the same from being sold under the real value, and to appoint one or more persons to bid for the same accordingly; and notice of attending before the Master was directed to be given to the heir-at-law and next of kin of the lunatic (q).

Where the Master certified by his report, that, in pursuance of an order made for sale of a lunatic's estate, he had caused advertisements to be inserted in the London Gazette, and in several London newspapers, for sale at the public room of the Court of Chancery, and that a person who attended and was the highest bidder, was allowed by the Master to be the purchaser, and such report had been confirmed; on the petition of such purchaser it was ordered, that he should forthwith pay the amount of his purchase-money and the interest thereon (to be verified by affidavit) into the Bank of England, in the name and with the privity of the Accountant-General of the Court of Chancery, on the credit of the matter, to an account to be intitled "the produce of the sale of the real estate of the lunatic," which was to be invested in the purchase of 31. per cent. Consol. Bank Annuities; and it was ordered, that upon payment of such purchasemoney and interest, the committee of the estate of the lunatic, in his name and on his behalf, should execute a proper conveyance or other assurance of all the estate and interest of the lunatic in the estate sold to the purchaser, his heirs, and assigns, or as he or they should direct (r).

In a recent case, where large estates were settled on the lunatic for life, with remainder to his first and other sons in tail, and the eldest son, being of age, was desirous of purchasing the life-interest of his father, (a sum of money being (r) In re Wharton, 22nd March,

(9) In re Humpleby, 9th May, 1831.

1832.

required for payment of incumbrances on the estates and the debts of the lunatic), and the Master had reported in favour of the son's proposal, which was objected to by the committee and younger children of the lunatic-Lord Chancellor Brougham expressed a very strong opinion against sanctioning the proposed purchase by the eldest son, and said, that the Court would not be justified in ordering the sale of the lunatic's life-interest in a large estate, except in a case of urgent necessity; for the Court always contemplated the possibility of the lunatic's recovery; and if on that event, instead of being restored to his property, he found that his interest in his family estate had been disposed of, it would have a most injurious effect upon his mind (s). In the same case it was afterwards proposed by the committee to raise a sum of money on mortgage of the lunatic's estates for payment of his debts, and by his son to become the purchaser of the life-interest of his father; when it was referred to the Master to inquire and certify whether it would be proper, and for the benefit of the lunatic, (regard being had to his circumstances and estate), that a particular sum or any other sum should be raised, or that provision should be made for raising any and what sums of money by mortgage, annuity, or otherwise, on the estates of the lunatic, for the purpose of being applied in satisfaction of all or some, and which of the incumbrances affecting such estates, the debts of the lunatic, and the costs incurred in the lunacy; and if the Master should be of opinion in the affirmative, then he was to inquire whether the same should be raised upon the terms proposed by the committee, or upon the terms proposed by the lunatic's eldest son, or in any other and what manner, either by way of mortgage or otherwise, on the son's consenting to join in a new settlement of part of the estates, (if the Master thought the same ought to be made), and upon being paid a sum of money in addition to that before allowed to him for his maintenance; and if the Master should think that an act of Parliament was necessary for effecting any settlement, then he was to inquire whether it would be proper, and for the benefit of the lunatic, his family, and estate, to apply to Parliament for such act (t). (s) In re Frank, 31st Aug. 1831. (t) Id. 20th March, 1832.

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The Master reported that it would be advantageous to raise a sum of money on mortgage of the estates of the lunatic, to be applied in satisfaction of the incumbrances on his estates, and his debts; and recommended that the eldest son should be at liberty to purchase an annuity on the life of his father, to be secured to the son, his executors, administrators, and assigns, during the life of the former, and charged on part of his estates; and (subject to such annuity, and the mortgage directed to be made,) that such estates should be again settled on the lunatic for life, remainder to his eldest son for life, with limitations in strict settlement to his sons, with remainder to the other sons of the lunatic and their issue, in strict settlement, with provisions and powers for raising portions and creating jointure-rent-charges, and other usual powers; and that it would be proper to apply for an act of Parliament, for carrying such arrangement into effect. The last report was confirmed, and the committee was directed to grant an annuity to the eldest son, charged on the lunatic's estate, and (subject to such annuity and to a mortgage for securing the sum directed to be raised, which was to be executed by the eldest son to the persons advancing the money,) the committee was ordered to join with all necessary parties in executing the requisite deeds for effecting the proposed settlement of the estates, and to apply to Parliament for an act for that purpose; and the costs of the committee and the younger children of the lunatic, incurred in carrying such arrangement into effect, were directed to be taxed and paid out of his estate (u).

Orders have, in some instances, been made for carrying into effect, or rescinding, contracts made by lunatics before the inquisition, for sale of part of their property. Thus, in one case, the Master was directed to receive proposals for the sale, by private contract, of a freehold house belonging to the lunatic, which he had agreed to sell before the inquisition, with liberty for the Master to sell the same at such price as he should think reasonable; he reported that the sum which had been offered was a fair price; and, on the petition of the purchaser, such report was confirmed, and the

(u) In re Frank, 12th May, 1832.

usual directions were given for carrying the sale into effect (v). And in another case, an order was made for rescinding a contract, made by the lunatic before the commission of lunacy, for sale of part of his property (w).

In a recent case, where a testator devised his real estates to trustees, in trust to divide the same in equal moieties between his two daughters, one of whom was afterwards found a lunatic by inquisition; and on a bill being filed by the creditors of the testator against the lunatic and her committee and others, for payment of their debts, a decree was made by the Court of Chancery for sale of so much of the testator's real estates as would be sufficient to pay such of his debts as should not be satisfied out of his personal estate; and the real estate was sold under such decree, and the purchase money had been paid into Court; when a petition was presented by the surviving trustee of the will and the purchaser, for the purpose of obtaining an order for a conveyance from the committee of the lunatic. It was doubted whether the application was made by the proper person within the meaning of the statute 11 Geo. 4 & 1 Will. 4, c. 60, s. 11; but, on a petition being afterwards presented by the lunatic herself, it was referred to the Master to inquire whether the moiety of the estate lately belonging to her had been properly sold; and, if so, then the committee of her estate was ordered to join, with all proper parties, in executing such conveyances to the purchaser as the Master should deem necessary (x).

Generally speaking, where the estates of a lunatic are directed to be sold, his committee will not be allowed to become the purchaser, on the same principle as trustees (y), assignees of the estates of bankrupts (≈), and other persons in a confidential relation towards the parties interested, are

(v) In re Iredale, 26 April, 1827. (w) In re Lucas, 9 August, 1827. (x) In re Bird, 25 April, 1832. (y) Ex parte Lacey, 6 Ves. 627; Lister v. Lister, Id. 631; Downes v.

Grazebrook, 3 Mer. 208.

(z) Ex parte Reynolds, 5 Ves. 707; Ex parte James, 8 Ves. 337; Ex parte Bennett, 10 Ves. 381. See Sugd. V. & P. chap. 14, s. 2.

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prohibited from purchasing estates of which they have the management in those capacities.

In a case, where it appeared that sums of money, advanced by the committee of the person and estate of a lunatic were due to the former, and that the lunatic was entitled to a share of trust funds on the death of another person, which had been estimated by the Actuary of the Equitable Assurance Office to be worth 16947., and that there were debts due from the lunatic to such committee and other persons, and the Master had reported that it would be expedient, and for the advantage of the lunatic, to sell such interests according to the valuation, and that an annuity should be purchased out of the produce of such sale, for the benefit of the lunatic-It was ordered that such committee and other persons should be considered creditors on the lunatic's estates, for the sums mentioned in the report; and that, upon the committee entering into a joint bond with two other parties, to be approved by the Master, for securing an annuity to the lunatic, and upon such bond being deposited in the Master's office, the committee should be at liberty to become the purchaser of all the estate and interest of the lunatic under a particular will at the price of 16007.; and that, after the execution of such bond, the committee should be at liberty to sell such interests of the lunatic, either by public auction or private contract, for any sum not less than 16007., with liberty for the committee to execute all necessary deeds for carrying such sale into effect; and it was further ordered, that in case the committee should elect to become the purchaser of the lunatic's interest at the sum of 1600, or in case he should make such sale as aforesaid, that then, out of such money, he should purchase a government annuity for the life of the lunatic; whereupon the bond which he should execute was to be vacated (a).

4. Before the passing of the statutes mentioned in the preceding part of this section, the sale or mortgage, or other disposition of the estates of lunatics, could be carried into

(a) In re Butcher, 21 December, 1831.

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