Dundas's Trustees v. Dundas's Trustees [1911] ScotLR 417 (31 January 1911)

Dundas's Trustees v. Dundas's Trustees [1911] ScotLR 417 (31 January 1911)

On a fair construction of the marriage contract, the obligation did not require the payment of £30,000 free of all government duties. Settlement estate duty on the £3750 balance is to be borne by the marriage-contract trustees (second parties), not the testamentary trustees. The Finance Acts do not impose ultimate liability for settlement estate duty on the general estate except where expressly provided, and the settled property should bear the duty.

Parties
First Parties (applicants): Robert Nevill Dundas and John Ramsay Anderson, testamentary trustees of the late Sir Robert Dundas of Arniston, Baronet; Second Parties (respondents): Robert Nevill Dundas and others, trustees under the antenuptial contract of marriage of Captain Henry H. P. Dundas and Lady Beatrix Home
Jurisdiction
Scotland
Judgment Date
31 January 1911
Procedural Posture
Special Case (revenue/succession/settlement Estate Duty) / Inner House, First Division, Court of Session – Judgment
Outcome
Special Case answered: First question answered in the negative; second question answered that settlement estate duty on the £3750 falls to be paid by the second parties (marriage-contract trustees).
Legal Topics
Settlement Estate Duty, Incidence of Death Duties, Marriage Contract Settlements, Construction of Finance Acts, Obligations of Testamentary Trustees
Revenue Succession Trusts and Estates Settlement Estate Duty Incidence of Death Duties Marriage Contract Settlements Construction of Finance Acts Obligations of Testamentary Trustees

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Parties

Robert Nevill Dundas and John Ramsay Anderson, testamentary trustees of the late Sir Robert Dundas of Arniston, Baronet

First Parties (applicants)

Robert Nevill Dundas and others, trustees under the antenuptial contract of marriage of Captain Henry H. P. Dundas and Lady Beatrix Home

Second Parties (respondents)

Procedural Posture

Special Case (revenue/succession/settlement Estate Duty) / Inner House, First Division, Court of Session – Judgment

Legal Issues

  1. 1 Whether estate duty and succession duty fall to be deducted from the sum of £6250 payable under the marriage contract.
  2. 2 Whether settlement estate duty and succession duty on the balance of £3750 (to make up £30,000) are payable by the testamentary trustees or the marriage-contract trustees.

Ratio Decidendi

On a fair construction of the marriage contract, the obligation did not require the payment of £30,000 free of all government duties. Settlement estate duty on the £3750 balance is to be borne by the marriage-contract trustees (second parties), not the testamentary trustees. The Finance Acts do not impose ultimate liability for settlement estate duty on the general estate except where expressly provided, and the settled property should bear the duty.

Court Disposition

Special Case answered: First question answered in the negative; second question answered that settlement estate duty on the £3750 falls to be paid by the second parties (marriage-contract trustees).

Orders

  • Second parties found liable in expenses.