White's Trustees v. Nicol [1923] ScotLR 542 (05 July 1923)

White's Trustees v. Nicol [1923] ScotLR 542 (05 July 1923)

The trust deed did not expressly restrict payment of debts and legacies to accumulated rents; therefore, the trustees are entitled to accept the heir's offer to pay these sums, and may execute the deed of entail immediately. The intention of the testator was to disencumber the estate, not to restrict the source of payment.

Citation
[1923] ScotLR 542
Parties
First Parties (trustees): William James White Nicol and another (Trustees under the trust-disposition and settlement of John White); Second Party (heir and Offeror): William James White Nicol (as an individual); Third Parties (next Heirs): William G. D. H. Nicol, Miss Jane B. E. Nicol, Miss Margaret C. M. Nicol
Jurisdiction
Scotland
Judgment Date
05 July 1923
Procedural Posture
Special Case (trust/succession) / Inner House, Second Division, Court of Session (judgment)
Outcome
First question answered in the affirmative; second in the negative. Trustees may accept the heir's offer and execute the deed of entail immediately.
Legal Topics
Acceleration of Succession, Trustee Powers, Payment of Debts and Legacies, Entail, Accumulation of Rents
Succession Trusts Property Law Acceleration of Succession Trustee Powers Payment of Debts and Legacies Entail Accumulation of Rents

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Parties

William James White Nicol and another (Trustees under the trust-disposition and settlement of John White)

First Parties (trustees)

William James White Nicol (as an individual)

Second Party (heir and Offeror)

William G. D. H. Nicol, Miss Jane B. E. Nicol, Miss Margaret C. M. Nicol

Third Parties (next Heirs)

Procedural Posture

Special Case (trust/succession) / Inner House, Second Division, Court of Session (judgment)

Legal Issues

  1. 1 Whether trustees are restricted to paying debts and legacies only from accumulated rents before executing a deed of entail, or may accept an offer from the heir to pay off debts and legacies for immediate execution of the entail.

Ratio Decidendi

The trust deed did not expressly restrict payment of debts and legacies to accumulated rents; therefore, the trustees are entitled to accept the heir's offer to pay these sums, and may execute the deed of entail immediately. The intention of the testator was to disencumber the estate, not to restrict the source of payment.

Court Disposition

First question answered in the affirmative; second in the negative. Trustees may accept the heir's offer and execute the deed of entail immediately.

Orders

  • Trustees are entitled to accept the offer of the heir to pay off debts and legacies and to execute the deed of entail in his favour.