Murdoch's Trustees v. Stock's Trustees [1923] ScotLR 610 (14 July 1923)

Murdoch's Trustees v. Stock's Trustees [1923] ScotLR 610 (14 July 1923)

The surplus income of the trust estate, set free by the operation of the Thellusson Act, does not pass under the general assignations in the daughters' marriage contracts but falls to be paid directly to the daughters as income. The established rule is that general assignations in marriage contracts do not carry such income unless the context clearly requires it, and the exception clauses in the marriage contracts reinforce this conclusion.

Citation
[1923] ScotLR 610
Parties
First Parties (trustees Under Alexander Murdoch's Trust Disposition and Settlement): Murdoch's Trustees; Second Parties (trustees Under Marriage Contract of Mrs Evelyn Hutchison Murdoch or Stock): Stock's Trustees; Third Parties (trustees Under Marriage Contract of Mrs Helen Beatrice Murdoch or Mitchell): Mitchell's Trustees; Fourth Parties (daughters of Alexander Murdoch): Mrs Evelyn Hutchison Murdoch or Stock and Mrs Helen Beatrice Murdoch or Mitchell
Jurisdiction
Scotland
Judgment Date
14 July 1923
Procedural Posture
Special Case (court of Session, Inner House, First Division) / Judgment on Questions of Law Regarding Trust Income and Marriage Contract Assignations
Outcome
First question of law, branch (a), answered in the negative; branch (b), answered in the affirmative; second question superseded.
Legal Topics
Marriage Contract Assignation, Trust Income Distribution, Thellusson Act 1800, Accumulation of Income, Intestacy, Interpretation of Testamentary Documents
Trusts and Estates Succession Law Family Law Marriage Contract Assignation Trust Income Distribution Thellusson Act 1800 Accumulation of Income Intestacy +1 more

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Parties

Murdoch's Trustees

First Parties (trustees Under Alexander Murdoch's Trust Disposition and Settlement)

Stock's Trustees

Second Parties (trustees Under Marriage Contract of Mrs Evelyn Hutchison Murdoch or Stock)

Mitchell's Trustees

Third Parties (trustees Under Marriage Contract of Mrs Helen Beatrice Murdoch or Mitchell)

Mrs Evelyn Hutchison Murdoch or Stock and Mrs Helen Beatrice Murdoch or Mitchell

Fourth Parties (daughters of Alexander Murdoch)

Procedural Posture

Special Case (court of Session, Inner House, First Division) / Judgment on Questions of Law Regarding Trust Income and Marriage Contract Assignations

Legal Issues

  1. 1 Whether surplus income of trust estate, set free by the Thellusson Act, passes under general assignations in daughters' marriage contracts or is payable directly to the daughters
  2. 2 Whether such surplus income is to be treated as capital or income in the hands of marriage contract trustees

Ratio Decidendi

The surplus income of the trust estate, set free by the operation of the Thellusson Act, does not pass under the general assignations in the daughters' marriage contracts but falls to be paid directly to the daughters as income. The established rule is that general assignations in marriage contracts do not carry such income unless the context clearly requires it, and the exception clauses in the marriage contracts reinforce this conclusion.

Court Disposition

First question of law, branch (a), answered in the negative; branch (b), answered in the affirmative; second question superseded.

Orders

  • Surplus income of the trust estate, after statutory payments, is to be paid directly to the daughters and not to the marriage contract trustees.