PERPETUAL TRUSTEE COMPANY V. ADAMS 42/1923

PERPETUAL TRUSTEE COMPANY V. ADAMS 42/1923

The proper construction of the will requires the formation of a common fund of income to be distributed among the four children in the specified shares until each reaches the age of 25 or is entitled to possession of their specifically devised land, whichever occurs first. The pooling and equalisation provisions were validly exercisable by the trustees, and the directions for accumulation and deferred enjoyment did not infringe the rule against perpetuities or the Saunders v. Vautier principle so long as other destinations of income operated during deferment. The lower court's orders were largely affirmed, with some variations to better reflect the proper construction and safeguard the...

Parties
Appellant: Adams; Appellant: Other beneficiaries (unnamed); Respondent: Perpetual Trustees Company
Jurisdiction
Australia
Procedural Posture
Appeal / Appellate Judgment
Outcome
appeal dismissed in part, allowed in part; orders varied
Legal Topics
Construction of Wills, Trustee Powers, Accumulation of Income, Equalisation of Income, Rule Against Perpetuities
Wills and Estates Trusts Construction of Wills Trustee Powers Accumulation of Income Equalisation of Income Rule Against Perpetuities

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Parties

Adams

Appellant

Other beneficiaries (unnamed)

Appellant

Perpetual Trustees Company

Respondent

Procedural Posture

Appeal / Appellate Judgment

Legal Issues

  1. 1 Proper construction of provisions in the will of W.J. Adams regarding distribution and equalisation of income among children
  2. 2 Power of trustees to pool and distribute income from specifically devised properties
  3. 3 Validity and effect of directions for accumulation and pooling of income, including effect of rule against perpetuities and doctrine of Saunders v. Vautier

Ratio Decidendi

The proper construction of the will requires the formation of a common fund of income to be distributed among the four children in the specified shares until each reaches the age of 25 or is entitled to possession of their specifically devised land, whichever occurs first. The pooling and equalisation provisions were validly exercisable by the trustees, and the directions for accumulation and deferred enjoyment did not infringe the rule against perpetuities or the Saunders v. Vautier principle so long as other destinations of income operated during deferment. The lower court's orders were largely affirmed, with some variations to better reflect the proper construction and safeguard the...

Court Disposition

appeal dismissed in part, allowed in part; orders varied

Orders

  • Declaration in answer to question 5 varied to clarify commencement and termination of pooling based on possession or age 25 of the youngest child.
  • Declaration in answer to questions 9 and 10 varied to define period of accumulation relative to debenture due date and mortgage discharge.