Forsyth v Perpetual Trustee Co (Ltd) [1951] HCA 74

Forsyth v Perpetual Trustee Co (Ltd) [1951] HCA 74

Clause 2 imposed an imperative duty to transfer the trust fund to William upon his attaining fifty-five years if he had not become disentitled. William attained that age without disentitlement, so his right to the absolute transfer had accrued and his interest vested absolutely and indefeasibly. In context, the words in clause 5 "without having received the absolute transfer" meant without having become entitled de jure to that transfer, not without actual physical transfer of the investments. Clause 5 therefore did not divest William's interest, and the trust fund was held for his executors.

Jurisdiction
Australia
Procedural Posture
Appeal Concerning the Construction of an Indenture of Settlement / Appeal to the High Court of Australia From a Decretal Order of the Supreme Court of New South Wales in Its Equitable Jurisdiction on an Originating Summons
Outcome
Appeal dismissed with costs.
Legal Topics
['construction of Trust Deed' 'protective Trusts' 'vesting and Defeasance of Beneficial Interests' 'meaning of "received" in Trust Dispositions']
['equity' 'trusts'] ['construction of Trust Deed' 'protective Trusts' 'vesting and Defeasance of Beneficial Interests' 'meaning of "received" in Trust Dispositions']

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Procedural Posture

Appeal Concerning the Construction of an Indenture of Settlement / Appeal to the High Court of Australia From a Decretal Order of the Supreme Court of New South Wales in Its Equitable Jurisdiction on an Originating Summons

Legal Issues

  1. 1 ['Whether clause 5 of the indenture applied because William Edgar Forsyth died after attaining fifty-five years but before the trust fund was actually transferred to him.' 'Whether the words "without having received the absolute transfer of the trust fund as hereinbefore provided" meant without actual receipt of the trust fund or without becoming entitled de jure to receive it.' 'Whether the trust fund was held for the executors of William Edgar Forsyth or for his surviving sisters and brother.']

Ratio Decidendi

Clause 2 imposed an imperative duty to transfer the trust fund to William upon his attaining fifty-five years if he had not become disentitled. William attained that age without disentitlement, so his right to the absolute transfer had accrued and his interest vested absolutely and indefeasibly. In context, the words in clause 5 "without having received the absolute transfer" meant without having become entitled de jure to that transfer, not without actual physical transfer of the investments. Clause 5 therefore did not divest William's interest, and the trust fund was held for his executors.

Court Disposition

Appeal dismissed with costs.

Orders

  • ['Appeal dismissed with costs.']