Colquhoun's Trustees v. Colquhoun [1921] ScotLR 40 (09 November 1921)

Colquhoun's Trustees v. Colquhoun [1921] ScotLR 40 (09 November 1921)

The annuity of £3000 bequeathed to the beneficiary is payable out of capital to the extent that income is insufficient, as this is the ordinary legal quality of an annuity in Scots law and there is no sufficient evidence in the deed of a contrary intention by the testator.

Citation
[1921] ScotLR 40
Parties
First Parties (trustees): Sir Colin George Macrae, W. S., Edinburgh, and others (Colquhoun's Trustees); Second Party (beneficiary/son): Sir Iain Colquhoun, Baronet of Colquhoun and Luss
Jurisdiction
Scotland
Judgment Date
09 November 1921
Procedural Posture
Special Case (court of Session, Inner House, First Division) / Judgment on Construction of Will and Trustees' Powers
Outcome
Trustees are bound to pay the annuity of £3000 out of capital if income is insufficient.
Legal Topics
Construction of Wills, Payment of Annuities, Trustee Powers, Encroachment on Capital, Bequests
Succession Trusts and Estates Construction of Wills Payment of Annuities Trustee Powers Encroachment on Capital Bequests

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Parties

Sir Colin George Macrae, W. S., Edinburgh, and others (Colquhoun's Trustees)

First Parties (trustees)

Sir Iain Colquhoun, Baronet of Colquhoun and Luss

Second Party (beneficiary/son)

Procedural Posture

Special Case (court of Session, Inner House, First Division) / Judgment on Construction of Will and Trustees' Powers

Legal Issues

  1. 1 Whether the trustees are bound to pay the annuity of £3000 to the beneficiary out of capital when income is insufficient.

Ratio Decidendi

The annuity of £3000 bequeathed to the beneficiary is payable out of capital to the extent that income is insufficient, as this is the ordinary legal quality of an annuity in Scots law and there is no sufficient evidence in the deed of a contrary intention by the testator.

Court Disposition

Trustees are bound to pay the annuity of £3000 out of capital if income is insufficient.

Orders

  • Branch (a) of the first question of law answered in the affirmative: the annuity is payable out of capital to the extent income is insufficient.