Kennedy's Trustees v. Warren [1901] ScotLR 38_827 (19 July 1901)

Kennedy's Trustees v. Warren [1901] ScotLR 38_827 (19 July 1901)

The will did not contemplate a continuing trust; thus, beneficiaries are entitled to payment of their shares in capital rather than annuities. The one-sixth share intended for the servant-maid, there being no such person at the testatrix's death, accrues to the surviving beneficiaries proportionately, not to intestacy.

Citation
[1901] ScotLR 38_827
Parties
Trustees (first Parties): Kennedy's Trustees; Second Party (beneficiary, Heir at Law, Next of Kin): Aldred Kennedy Warren; Third Party (beneficiary): David Dunn; Fourth Party (beneficiary): Miss Margaret Welsh
Jurisdiction
Scotland
Judgment Date
19 July 1901
Procedural Posture
Special Case (construction of Testamentary Trust) / Judgment of Inner House, First Division, Court of Session
Outcome
First, fourth, and fifth questions answered in the affirmative; second, third, and sixth questions answered in the negative. Beneficiaries entitled to capital; one-sixth share accrues to survivors.
Legal Topics
Construction of Testamentary Writings, Purchase of Annuities, Gift Over Clauses, Intestacy, Alimentary Trusts
Succession Trusts Construction of Testamentary Writings Purchase of Annuities Gift Over Clauses Intestacy Alimentary Trusts

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Parties

Kennedy's Trustees

Trustees (first Parties)

Aldred Kennedy Warren

Second Party (beneficiary, Heir at Law, Next of Kin)

David Dunn

Third Party (beneficiary)

Miss Margaret Welsh

Fourth Party (beneficiary)

Procedural Posture

Special Case (construction of Testamentary Trust) / Judgment of Inner House, First Division, Court of Session

Legal Issues

  1. 1 Whether trustees are bound to purchase annuities or pay capital to beneficiaries
  2. 2 Whether the one-sixth share for a non-existent servant-maid falls into intestacy or accrues to other beneficiaries

Ratio Decidendi

The will did not contemplate a continuing trust; thus, beneficiaries are entitled to payment of their shares in capital rather than annuities. The one-sixth share intended for the servant-maid, there being no such person at the testatrix's death, accrues to the surviving beneficiaries proportionately, not to intestacy.

Court Disposition

First, fourth, and fifth questions answered in the affirmative; second, third, and sixth questions answered in the negative. Beneficiaries entitled to capital; one-sixth share accrues to survivors.

Orders

  • Trustees to pay one-third of the residue each to Aldred Kennedy Warren and David Dunn in capital, not annuities.
  • One-sixth share intended for servant-maid to be divided proportionately among Aldred Kennedy Warren, David Dunn, and Margaret Welsh.