Mitchell's Trustees v. Mitchell's Trustees [1915] ScotLR 293 (21 January 1915)

Mitchell's Trustees v. Mitchell's Trustees [1915] ScotLR 293 (21 January 1915)

The residue clause is not void from uncertainty because it provides a workable discretion to trustees to make payments to deserving children or grandchildren, and the Thellusson Act does not apply since the accumulation of income was not directed by the will nor a necessary consequence of its terms, but resulted from the trustees' inaction or absence of suitable beneficiaries.

Citation
[1915] ScotLR 293
Parties
Pursuers and Real Raisers: James Napier Hotchkis, W. S., St Andrews, and others, the testamentary trustees of the late Robert Mitchell; Defenders / Claimants and Respondents: William Isles Mitchell and others (including James Mitchell, Mrs Fraser, and others)
Jurisdiction
Scotland
Judgment Date
21 January 1915
Procedural Posture
Multiplepoinding and Exoneration / Inner House, Second Division, Reclaiming Note (appeal) Against Interlocutors of Lord Anderson (14 Nov 1913) and Lord Skerrington (12 Jun 1912)
Outcome
Interlocutor of Lord Anderson (14 Nov 1913) recalled; interlocutor of Lord Skerrington (12 Jun 1912) affirmed as regards the residue clause.
Legal Topics
Validity of Testamentary Residue Clause, Uncertainty in Wills, Accumulation of Income Under Thellusson Act, Discretionary Trusts, Charitable Trusts
Succession Trusts and Estates Validity of Testamentary Residue Clause Uncertainty in Wills Accumulation of Income Under Thellusson Act Discretionary Trusts Charitable Trusts

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Parties

James Napier Hotchkis, W. S., St Andrews, and others, the testamentary trustees of the late Robert Mitchell

Pursuers and Real Raisers

William Isles Mitchell and others (including James Mitchell, Mrs Fraser, and others)

Defenders / Claimants and Respondents

Procedural Posture

Multiplepoinding and Exoneration / Inner House, Second Division, Reclaiming Note (appeal) Against Interlocutors of Lord Anderson (14 Nov 1913) and Lord Skerrington (12 Jun 1912)

Legal Issues

  1. 1 Whether the residue clause in the testator's will is void from uncertainty
  2. 2 Whether the Thellusson Act applies to accumulated income after 21 years from the testator's death

Ratio Decidendi

The residue clause is not void from uncertainty because it provides a workable discretion to trustees to make payments to deserving children or grandchildren, and the Thellusson Act does not apply since the accumulation of income was not directed by the will nor a necessary consequence of its terms, but resulted from the trustees' inaction or absence of suitable beneficiaries.

Court Disposition

Interlocutor of Lord Anderson (14 Nov 1913) recalled; interlocutor of Lord Skerrington (12 Jun 1912) affirmed as regards the residue clause.

Orders

  • Residue clause of the trust-disposition and settlement is not void from uncertainty.
  • Thellusson Act does not apply to the accumulations in question.