Wilson's Trustees v. Wilson and Others [1919] ScotLR 256 (08 February 1919)

Wilson's Trustees v. Wilson and Others [1919] ScotLR 256 (08 February 1919)

The will does not contain an express or implied direction that the widow's annuity is to be paid free of income tax. The phrase 'free yearly income' refers to income after debts and administration costs, not income tax. Therefore, the widow must bear the income tax on the bequest.

Citation
[1919] ScotLR 256
Parties
First Parties (applicants): Bruce Rennie and others, Trustees of John Millar Wilson; Second Party (respondent): Mrs Lilian Harriette Wilson; Third Parties (respondents): Christina Mary Wilson and others, nephews and nieces of John Millar Wilson
Jurisdiction
Scotland
Judgment Date
08 February 1919
Procedural Posture
Special Case (construction of Will) / Inner House, First Division, Court of Session (judgment on Stated Case)
Outcome
Widow not entitled to payment of £600 per annum free of income tax; she must bear the tax herself.
Legal Topics
Construction of Wills, Incidence of Income Tax on Testamentary Income, Alimentary Provision, Interpretation of 'free Yearly Income'
Succession Trusts Taxation Construction of Wills Incidence of Income Tax on Testamentary Income Alimentary Provision Interpretation of 'free Yearly Income'

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Parties

Bruce Rennie and others, Trustees of John Millar Wilson

First Parties (applicants)

Mrs Lilian Harriette Wilson

Second Party (respondent)

Christina Mary Wilson and others, nephews and nieces of John Millar Wilson

Third Parties (respondents)

Procedural Posture

Special Case (construction of Will) / Inner House, First Division, Court of Session (judgment on Stated Case)

Legal Issues

  1. 1 Whether the widow is entitled to receive the bequest of £600 per annum free of income tax or subject to deduction of income tax
  2. 2 Whether the phrase 'free yearly income' and 'to cover all rent, rates, and taxes' includes income tax

Ratio Decidendi

The will does not contain an express or implied direction that the widow's annuity is to be paid free of income tax. The phrase 'free yearly income' refers to income after debts and administration costs, not income tax. Therefore, the widow must bear the income tax on the bequest.

Court Disposition

Widow not entitled to payment of £600 per annum free of income tax; she must bear the tax herself.

Orders

  • First question (entitlement to £600 per annum without deduction of income tax) answered in the negative.
  • Second question (entitlement only to amount after deduction of income tax) answered in the affirmative.