Bate's Trustees v. Bate [1906] ScotLR 43_660 (05 June 1906)

Bate's Trustees v. Bate [1906] ScotLR 43_660 (05 June 1906)

The trust assignation expressly provided a liferent to the husband only in the event of there being no children. As there were surviving children, no liferent could be implied. The fee vested in the sons at Mrs Bate's death, and the income followed the capital as an accessory. There was no trust purpose justifying postponement of payment; thus, the sons were entitled to immediate payment of capital and accrued interest.

Citation
[1906] ScotLR 43_660
Parties
First Party: Sir Matthew Arthur, Bart., and others (Trustees); Second Party (husband): Thomas Elwood Lindesay Bate; Third Parties (sons/issue): Ronald Elwood Bate and Claud Lindesay Bate
Jurisdiction
Scotland
Judgment Date
05 June 1906
Procedural Posture
Special Case (trust/succession) / Judgment (inner House, Second Division)
Outcome
Husband not entitled to liferent; sons entitled to immediate payment of capital and accrued interest.
Legal Topics
Vesting, Liferent, Implied Gift, Intestacy, Trust Construction
Succession Trusts Vesting Liferent Implied Gift Intestacy Trust Construction

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Parties

Sir Matthew Arthur, Bart., and others (Trustees)

First Party

Thomas Elwood Lindesay Bate

Second Party (husband)

Ronald Elwood Bate and Claud Lindesay Bate

Third Parties (sons/issue)

Procedural Posture

Special Case (trust/succession) / Judgment (inner House, Second Division)

Legal Issues

  1. 1 Whether the surviving husband is entitled to a liferent of the trust estate by implication under the third purpose of the trust assignation.
  2. 2 Whether the income of the trust estate from the death of Mrs Bate until the period of payment is undisposed of and falls into intestacy.
  3. 3 Whether the sons are entitled to immediate payment of the capital and accrued interest of the trust estate.

Ratio Decidendi

The trust assignation expressly provided a liferent to the husband only in the event of there being no children. As there were surviving children, no liferent could be implied. The fee vested in the sons at Mrs Bate's death, and the income followed the capital as an accessory. There was no trust purpose justifying postponement of payment; thus, the sons were entitled to immediate payment of capital and accrued interest.

Court Disposition

Husband not entitled to liferent; sons entitled to immediate payment of capital and accrued interest.

Orders

  • Answer the first and second questions and also the second alternative of the third question of law in the negative, and the first alternative of the third question in the affirmative.