Hope Johnstone v. Sinclair's Trustees [1904] ScotLR 42_30 (01 November 1904)

Hope Johnstone v. Sinclair's Trustees [1904] ScotLR 42_30 (01 November 1904)

Where a will directs trustees to 'hold' a fund for a class of beneficiaries defined by attainment of majority or marriage, but contains no direction to pay or distribute at that time, no beneficiary is entitled to payment until the class is finally ascertained, which occurs at the death of the parent; the trustees must retain the fund until then.

Citation
[1904] ScotLR 42_30
Parties
Pursuer/reclaimer: Hope Johnstone; Defender/respondent: Sinclair's Trustees; Liferentrix/interested Party: Emilie Johnstone; Curator/interested Party: William James Hope Johnstone
Jurisdiction
Scotland
Judgment Date
01 November 1904
Procedural Posture
Civil Succession/trusts / Appeal (reclaiming Note) From Lord Ordinary's Dismissal
Outcome
Appeal dismissed; judgment of Lord Ordinary affirmed.
Legal Topics
Legacy to a Class, Period of Distribution, Trustee Powers, Vesting of Shares, Construction of Wills
Succession Trusts and Estates Legacy to a Class Period of Distribution Trustee Powers Vesting of Shares Construction of Wills

Case Brief

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Parties

Hope Johnstone

Pursuer/reclaimer

Sinclair's Trustees

Defender/respondent

Emilie Johnstone

Liferentrix/interested Party

William James Hope Johnstone

Curator/interested Party

Procedural Posture

Civil Succession/trusts / Appeal (reclaiming Note) From Lord Ordinary's Dismissal

Legal Issues

  1. 1 Whether beneficiaries who have attained majority are entitled to immediate payment of their share under a trust where the direction is to 'hold' rather than to 'pay' or 'distribute'.
  2. 2 Whether the period of distribution arises before the class of beneficiaries is ascertained.

Ratio Decidendi

Where a will directs trustees to 'hold' a fund for a class of beneficiaries defined by attainment of majority or marriage, but contains no direction to pay or distribute at that time, no beneficiary is entitled to payment until the class is finally ascertained, which occurs at the death of the parent; the trustees must retain the fund until then.

Court Disposition

Appeal dismissed; judgment of Lord Ordinary affirmed.

Orders

  • Action dismissed; trustees to continue to hold the fund until the class of beneficiaries is ascertained.