Scott Moncrieff and Others (Lindsay's Trustees) Petitioners [1911] ScotLR 470 (08 March 1911)

Scott Moncrieff and Others (Lindsay's Trustees) Petitioners [1911] ScotLR 470 (08 March 1911)

The Thellusson Act does not strike at discretionary savings by trustees; it only voids mandatory directions to accumulate beyond 21 years. Since the trust deed authorised but did not direct accumulation, the trustees may save income at their discretion, and are not prohibited from doing so by the Act. However, encroachment on capital is only justified if accumulation is not feasible or expedient for the trust purposes.

Citation
[1911] ScotLR 470
Parties
Petitioners: Scott Moncrieff and Others (Lindsay's Trustees)
Jurisdiction
Scotland
Judgment Date
08 March 1911
Procedural Posture
Petition / Final Judgment on Application to Uplift Capital
Outcome
Petition granted in part, refused in part
Legal Topics
Accumulation of Income, Thellusson Act, Trustee Powers, Charitable Trusts
Trusts and Estates Charity Law Accumulation of Income Thellusson Act Trustee Powers Charitable Trusts

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Parties

Scott Moncrieff and Others (Lindsay's Trustees)

Petitioners

Procedural Posture

Petition / Final Judgment on Application to Uplift Capital

Legal Issues

  1. 1 Whether the trustees are entitled to continue accumulating income for the erection of a library, reading-room, and museum after 21 years from the testator's death under the Thellusson Act
  2. 2 Whether the trustees may encroach on capital to fulfill the trust purposes

Ratio Decidendi

The Thellusson Act does not strike at discretionary savings by trustees; it only voids mandatory directions to accumulate beyond 21 years. Since the trust deed authorised but did not direct accumulation, the trustees may save income at their discretion, and are not prohibited from doing so by the Act. However, encroachment on capital is only justified if accumulation is not feasible or expedient for the trust purposes.

Court Disposition

Petition granted in part, refused in part

Orders

  • Authorise the petitioners to uplift from the capital of the trust estate a sum not exceeding £2000 for acquiring land and erecting a library, reading-room, and museum in terms of the trust-disposition and settlement of Charles Lindsay
  • Quoad ultra refuse the prayer of the petition