Innes's Trustees v. Bowen and Others [1919] ScotLR 86 (06 December 1919)

Innes's Trustees v. Bowen and Others [1919] ScotLR 86 (06 December 1919)

Accumulations of income beyond twenty-one years from the testatrix's death, resulting from the operation of equitable compensation due to a claim for legitim, are prohibited by the Thellusson Act, as such accumulations are deemed to be directed by the trust deed, whether expressly or by necessary implication. The statutory exceptions do not apply to recoupment of legitim, and the income must be paid to the person entitled as if no accumulation had been directed.

Citation
[1919] ScotLR 86
Parties
First Parties (trustees): John James Lunham and another, the surviving trustees of Mrs Jane or Jeanie Drysdale or Innes; Second Party (daughter of Testatrix, Claimant of Legitim): Mrs Jeannie Cowie Drysdale Innes or Bowen; Third Parties (contingent Residuary Legatees): Captain Reginald Charles Bowen and others, the contingent residuary legatees or their representatives
Jurisdiction
Scotland
Judgment Date
06 December 1919
Procedural Posture
Special Case (court of Session, Inner House, Second Division) / Judgment on Questions of Law Regarding Trust Administration and Accumulations
Outcome
Majority judgment for the second party (Mrs Jeannie Cowie Drysdale Innes or Bowen); accumulations after twenty-one years are illegal and must be paid to her.
Legal Topics
Accumulations, Legitim, Equitable Compensation, Thellusson Act, Trust Administration
Succession Trusts and Estates Accumulations Legitim Equitable Compensation Thellusson Act Trust Administration

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Parties

John James Lunham and another, the surviving trustees of Mrs Jane or Jeanie Drysdale or Innes

First Parties (trustees)

Mrs Jeannie Cowie Drysdale Innes or Bowen

Second Party (daughter of Testatrix, Claimant of Legitim)

Captain Reginald Charles Bowen and others, the contingent residuary legatees or their representatives

Third Parties (contingent Residuary Legatees)

Procedural Posture

Special Case (court of Session, Inner House, Second Division) / Judgment on Questions of Law Regarding Trust Administration and Accumulations

Legal Issues

  1. 1 Whether trustees are entitled to accumulate income of the trust estate beyond twenty-one years from the testatrix's death to compensate for legitim claimed by the liferentrix
  2. 2 Whether such accumulations are prohibited by the Thellusson Act (Accumulations Act 1800)
  3. 3 Whether the income accrued after twenty-one years must be paid to the second party

Ratio Decidendi

Accumulations of income beyond twenty-one years from the testatrix's death, resulting from the operation of equitable compensation due to a claim for legitim, are prohibited by the Thellusson Act, as such accumulations are deemed to be directed by the trust deed, whether expressly or by necessary implication. The statutory exceptions do not apply to recoupment of legitim, and the income must be paid to the person entitled as if no accumulation had been directed.

Court Disposition

Majority judgment for the second party (Mrs Jeannie Cowie Drysdale Innes or Bowen); accumulations after twenty-one years are illegal and must be paid to her.

Orders

  • Trustees are not entitled to accumulate income of the trust estate after twenty-one years from the testatrix's death.
  • Such accumulations are illegal under the Thellusson Act.