Raymond Saul & Co. (a firm) v Holden & Anor [2008] EWHC 2731 (Ch) (12 November 2008)

Raymond Saul & Co. (a firm) v Holden & Anor [2008] EWHC 2731 (Ch) (12 November 2008)

The entitlement of a residuary legatee to the residue of an unadministered estate, including the right to receive the assets comprising that residue as and when administration is complete, vests in the trustee in bankruptcy under section 306 of the Insolvency Act 1986, even if the bankrupt is discharged before administration is complete. The trustee is entitled to receive the assets representing the residuary estate in priority to the legatee or his estate.

Citation
[2008] EWHC 2731 (Ch)
Parties
Claimant: Raymond Saul & Co.; First Defendant (as Personal Representative of Bernard Leslie Hemming Deceased): Jolyon Holden; Second Defendant (as Trustee in Bankruptcy of the Estate of Bernard Leslie Hemming): Louise Mary Britten
Jurisdiction
England and Wales
Judgment Date
12 November 2008
Procedural Posture
Chancery Claim Under CPR Part 64 / Judgment After Trial
Outcome
Declaration in favour of the Trustee; entitlement to the residue vests in the trustee in bankruptcy
Legal Topics
Bankruptcy and Administration of Estates, Vesting of Property in Bankruptcy, Residuary Legatee's Rights, Trustee in Bankruptcy's Entitlement
Insolvency Wills and Probate Bankruptcy and Administration of Estates Vesting of Property in Bankruptcy Residuary Legatee's Rights Trustee in Bankruptcy's Entitlement

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Parties

Raymond Saul & Co.

Claimant

Jolyon Holden

First Defendant (as Personal Representative of Bernard Leslie Hemming Deceased)

Louise Mary Britten

Second Defendant (as Trustee in Bankruptcy of the Estate of Bernard Leslie Hemming)

Procedural Posture

Chancery Claim Under CPR Part 64 / Judgment After Trial

Legal Issues

  1. 1 Whether the entitlement to the residue of an unadministered estate of a testator, where the residuary legatee has been made bankrupt but is discharged before completion of administration, vests in the trustee in bankruptcy or reverts to the legatee

Ratio Decidendi

The entitlement of a residuary legatee to the residue of an unadministered estate, including the right to receive the assets comprising that residue as and when administration is complete, vests in the trustee in bankruptcy under section 306 of the Insolvency Act 1986, even if the bankrupt is discharged before administration is complete. The trustee is entitled to receive the assets representing the residuary estate in priority to the legatee or his estate.

Court Disposition

Declaration in favour of the Trustee; entitlement to the residue vests in the trustee in bankruptcy

Orders

  • Declaration that the trustee in bankruptcy is entitled to receive the assets representing the residuary estate as and when administration is complete, in priority to the executor or the bankrupt's estate