Buick v Equity Trustees Executors & Agency Co Ltd [1957] HCA 65

Buick v Equity Trustees Executors & Agency Co Ltd [1957] HCA 65

On proper construction, the testator's children each take only a life interest in half of the income of the residuary estate, subject to the widow's interest. The remainder to issue per stirpes contingent upon attaining 21 (interpreted as all descendants) is void for remoteness under the rule against perpetuities, so there is an intestacy as to corpus after the expiration of the life interests.

Jurisdiction
Australia
Procedural Posture
Appeal / High Court Appeal From Supreme Court of Victoria (chambers) on Construction of Will
Outcome
Appeal allowed. Order of Supreme Court varied.
Legal Topics
['construction of Wills' 'rule Against Perpetuities' 'intestacy' 'life Interests' 'remainders']
['succession Law' 'wills and Estates'] ['construction of Wills' 'rule Against Perpetuities' 'intestacy' 'life Interests' 'remainders']

Case Brief

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Procedural Posture

Appeal / High Court Appeal From Supreme Court of Victoria (chambers) on Construction of Will

Legal Issues

  1. 1 ["What is the proper construction of the disposition of income and corpus in John Buick's will?" 'Whether the children of the testator take indefeasible interests in corpus or only life interests in income.' "Whether the remainder to 'issue' is valid or void for remoteness (perpetuities)." "Meaning of 'issue'—does it mean 'children' or all descendants?"]

Ratio Decidendi

On proper construction, the testator's children each take only a life interest in half of the income of the residuary estate, subject to the widow's interest. The remainder to issue per stirpes contingent upon attaining 21 (interpreted as all descendants) is void for remoteness under the rule against perpetuities, so there is an intestacy as to corpus after the expiration of the life interests.

Court Disposition

Appeal allowed. Order of Supreme Court varied.

Orders

  • ["Answers of Supreme Court to questions (a), (b), (c), (d) in the originating summons set aside and replaced with declarations: (1) On the true construction of the will, each child is entitled to one-half of the income of the residuary estate during his or her life only, subject to the widow's interest in income....