Peat v. Peat's Trustees [1901] ScotLR 38_269 (15 January 1901)

Peat v. Peat's Trustees [1901] ScotLR 38_269 (15 January 1901)

The annuity was a preferable charge upon the corpus of the trust estate, payable out of income or capital as necessary. Trustees were entitled to recover advances made to cover annuity deficiency and trust expenses from beneficiaries before conveying specific legacies.

Citation
[1901] ScotLR 38_269
Parties
Pursuer/respondent: Alexander Peat; Defenders/appellants: Peat's Trustees
Jurisdiction
Scotland
Judgment Date
15 January 1901
Procedural Posture
Succession Dispute / Appeal From Sheriff Court to Court of Session
Outcome
Appeal sustained; defenders assoilzied (absolved) with expenses.
Legal Topics
Annuity, Preferential Charge, Specific Legacy, Trustee Expenses, Distribution of Estate
Succession Trusts Property Law Annuity Preferential Charge Specific Legacy Trustee Expenses Distribution of Estate

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Parties

Alexander Peat

Pursuer/respondent

Peat's Trustees

Defenders/appellants

Procedural Posture

Succession Dispute / Appeal From Sheriff Court to Court of Session

Legal Issues

  1. 1 Whether trustees can demand repayment from capital for advances made to cover annuity deficiency
  2. 2 Whether annuity is a preferable charge on corpus of estate
  3. 3 Whether specific legacies are subject to trust expenses and annuity payments

Ratio Decidendi

The annuity was a preferable charge upon the corpus of the trust estate, payable out of income or capital as necessary. Trustees were entitled to recover advances made to cover annuity deficiency and trust expenses from beneficiaries before conveying specific legacies.

Court Disposition

Appeal sustained; defenders assoilzied (absolved) with expenses.

Orders

  • Defenders entitled to expenses as between agent and client in both courts.
  • Defenders authorised to charge all expenses incurred since 30 November 1899 against trust estate before accounting to pursuer, as taxed by Auditor.