In re Hammond

In re Hammond

Both sons took immediate vested interests in equal shares in the 'other half' of the residuary estate under paragraph 15, subject to charges and partial defeasance in favour of named beneficiaries or their issue; however the aliquot part otherwise payable in respect of a named beneficiary who died without issue did not become payable until the period of distribution (upon the widow's death), so the sons' estates had vested but not presently payable entitlements.

Citation
[1934] SCR 403
Parties
Appellant; Executor and Trustee of Herbert R. Hammond (deceased): The Royal Trust Company; Respondent; Widow and Life Beneficiary: Mrs. Fannie Hammond; Respondent; Executor and Trustee of Herbert Carlyle Hammond Estate: National Trust Company Ltd.; Respondent; Residuary Beneficiary Under Statute of Kathleen Saunders Hammond: Soldiers' Aid Commission of Ontario; Interested Party: Official Guardian; Testator (deceased): Herbert Carlyle Hammond
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
6 March 1934
Procedural Posture
Will Construction / Estate Dispute / Appeal to Supreme Court of Canada From Supreme Court of Ontario (originating Motion)
Outcome
Appeal allowed; judgment of the Supreme Court of Ontario set aside.
Legal Topics
Vesting, Time of Payment, Construction of Wills, Contingent Remainders, Gifts Over
Source Language
English
Estates Trusts Wills Succession Vesting Time of Payment Construction of Wills Contingent Remainders +1 more

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Parties

The Royal Trust Company

Appellant; Executor and Trustee of Herbert R. Hammond (deceased)

Mrs. Fannie Hammond

Respondent; Widow and Life Beneficiary

National Trust Company Ltd.

Respondent; Executor and Trustee of Herbert Carlyle Hammond Estate

Soldiers' Aid Commission of Ontario

Respondent; Residuary Beneficiary Under Statute of Kathleen Saunders Hammond

Official Guardian

Interested Party

Herbert Carlyle Hammond

Testator (deceased)

Procedural Posture

Will Construction / Estate Dispute / Appeal to Supreme Court of Canada From Supreme Court of Ontario (originating Motion)

Legal Issues

  1. 1 Whether the two sons took vested interests in the 'other half' of the residuary estate under paragraph 15 on the testator's death or at some later distribution date
  2. 2 Whether the aliquot share of a named beneficiary (Jessie Butler) who died without issue vested in the sons and was payable to their estates before the widow's death
  3. 3 Interpretation of conditional language and whether time was annexed to gift or to payment

Ratio Decidendi

Both sons took immediate vested interests in equal shares in the 'other half' of the residuary estate under paragraph 15, subject to charges and partial defeasance in favour of named beneficiaries or their issue; however the aliquot part otherwise payable in respect of a named beneficiary who died without issue did not become payable until the period of distribution (upon the widow's death), so the sons' estates had vested but not presently payable entitlements.

Court Disposition

Appeal allowed; judgment of the Supreme Court of Ontario set aside.

Orders

  • Appeal allowed and judgment of Kingstone J. set aside
  • Costs of all parties to be paid out of the estate