Martin's Trustees v. Martin [1904] ScotLR 41_588 (04 June 1904)

Income of a trust estate for a given year includes all sums due and payable in that year, regardless of actual receipt, and must be accounted for as such in trust accounts.

Citation: [1904] ScotLR 41_588
Parties: First Party: Martin's Trustees; Second Party: Mrs Mary Spence Christie or Martin
Jurisdiction: Scotland
Judgment Date: 04 June 1904
Procedural Posture: Special Case Stated / Judgment
Outcome: The Court answered the 12th question in the negative and the 13th in the affirmative, holding that income due in a year but received later is income of the year it became due.
Legal Topics: Administration of Trust, Trust Accounting, Income Allocation

Trusts and Estates Administration of Trust Trust Accounting Income Allocation

Case Brief

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Parties

Martin's Trustees

First Party

Mrs Mary Spence Christie or Martin

Second Party

Procedural Posture

Special Case Stated / Judgment

Legal Issues

1 Whether income becoming due in one year but received in the next should be treated as income of the year it became due or the year it was received for trust accounting purposes.

Ratio Decidendi

Income of a trust estate for a given year includes all sums due and payable in that year, regardless of actual receipt, and must be accounted for as such in trust accounts.

Court Disposition

The Court answered the 12th question in the negative and the 13th in the affirmative, holding that income due in a year but received later is income of the year it became due.

Orders

Trustees must account for income due and payable in each year as income of that year, not the year of receipt.