Bannatyne's Trustees v. Watson's Trustees [1914] ScotLR 605 (23 May 1914)

Bannatyne's Trustees v. Watson's Trustees [1914] ScotLR 605 (23 May 1914)

The testator's intention, as expressed in the will and codicil, was that vesting of the legacy was suspended until the date of distribution, and only those surviving at that date could take. As none of the conditional institutes survived the liferentrix, the legacy lapsed and fell into residue. The doctrine of vesting subject to defeasance was inapplicable because the class of beneficiaries was not ascertained at the testator's death and survivorship was required at the date of distribution.

Citation
[1914] ScotLR 605
Parties
First Parties: R. D. Watson and others, testamentary trustees of the late John Bannatyne; Second Parties: R. D. Watson and another, trustees and executors of the late James Watson; Third Parties: Francis Martin and another, testamentary trustees of the late Miss Eliza M. Cogan; Fourth Party: J. C. Livingston, testamentary trustee of the late R. J. Bartholomew
Jurisdiction
Scotland
Judgment Date
23 May 1914
Procedural Posture
Special Case (court of Session, Inner House, First Division) / Judgment on Construction of Testamentary Trust and Vesting of Legacy
Outcome
Legacy lapsed and fell into residue; first and second questions answered in the negative, third in the affirmative.
Legal Topics
Vesting, Vesting Subject to Defeasance, Conditional Institution, Destination Over, Double Contingency, Legacy Lapse
Succession Law Trusts and Estates Vesting Vesting Subject to Defeasance Conditional Institution Destination Over Double Contingency Legacy Lapse

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Parties

R. D. Watson and others, testamentary trustees of the late John Bannatyne

First Parties

R. D. Watson and another, trustees and executors of the late James Watson

Second Parties

Francis Martin and another, testamentary trustees of the late Miss Eliza M. Cogan

Third Parties

J. C. Livingston, testamentary trustee of the late R. J. Bartholomew

Fourth Party

Procedural Posture

Special Case (court of Session, Inner House, First Division) / Judgment on Construction of Testamentary Trust and Vesting of Legacy

Legal Issues

  1. 1 Whether the legacy of £2500 vested in Eliza M. Cogan or Robert John Bartholomew subject to defeasance, or lapsed and fell into residue upon the death of the liferentrix without issue.

Ratio Decidendi

The testator's intention, as expressed in the will and codicil, was that vesting of the legacy was suspended until the date of distribution, and only those surviving at that date could take. As none of the conditional institutes survived the liferentrix, the legacy lapsed and fell into residue. The doctrine of vesting subject to defeasance was inapplicable because the class of beneficiaries was not ascertained at the testator's death and survivorship was required at the date of distribution.

Court Disposition

Legacy lapsed and fell into residue; first and second questions answered in the negative, third in the affirmative.

Orders

  • The legacy of £2500 lapsed and fell into residue to be paid to the residuary legatee's trustees.