Cameron's Trustees v. Cameron [1907] ScotLR 44_354 (15 January 1907)

Cameron's Trustees v. Cameron [1907] ScotLR 44_354 (15 January 1907)

The majority held that recording the bonds and dispositions in security by the father as trustee for his children did not amount to delivery to the children or create effectual and irrevocable trusts. The father retained control, the bonds were kept in his custody, and he appropriated the interest and reinvested the funds at will. Registration in the Register of Sasines was not equivalent to delivery to the beneficiaries, and thus no perfected donation or irrevocable trust was created. The existence of a co-trustee who was unaware of the bond did not alter this conclusion. The trusts, if any, remained revocable and under the truster's control.

Citation
[1907] ScotLR 44_354
Parties
Applicant: Cameron's Trustees; Second Parties (beneficiaries): Christina Campbell Cameron and Donald John Cameron (surviving children); Third Party (respondent): Widow of Donald Cameron
Jurisdiction
Scotland
Judgment Date
15 January 1907
Procedural Posture
Special Case (trust/disposition) / Judgment by Inner House, Court of Session (scotland)
Outcome
Trusts not effectually constituted; recording in Register of Sasines did not operate as delivery to beneficiaries; trusts remained revocable and under truster's control.
Legal Topics
Constitution of Trusts, Delivery and Registration, Revocability of Gratuitous Trusts, Recording in Register of Sasines, Constructive Delivery, Donations Inter Vivos
Trusts and Estates Property Law Succession Constitution of Trusts Delivery and Registration Revocability of Gratuitous Trusts Recording in Register of Sasines Constructive Delivery +1 more

Case Brief

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Parties

Cameron's Trustees

Applicant

Christina Campbell Cameron and Donald John Cameron (surviving children)

Second Parties (beneficiaries)

Widow of Donald Cameron

Third Party (respondent)

Procedural Posture

Special Case (trust/disposition) / Judgment by Inner House, Court of Session (scotland)

Legal Issues

  1. 1 Whether recording of bonds and dispositions in security by a father as trustee for his children constitutes effectual and irrevocable trusts in favour of the beneficiaries.
  2. 2 Whether such recording is equivalent to delivery to the beneficiaries, thereby divesting the truster of control and making the trust irrevocable.
  3. 3 Whether the existence of a co-trustee or the form of the trust alters the effect of recording.

Ratio Decidendi

The majority held that recording the bonds and dispositions in security by the father as trustee for his children did not amount to delivery to the children or create effectual and irrevocable trusts. The father retained control, the bonds were kept in his custody, and he appropriated the interest and reinvested the funds at will. Registration in the Register of Sasines was not equivalent to delivery to the beneficiaries, and thus no perfected donation or irrevocable trust was created. The existence of a co-trustee who was unaware of the bond did not alter this conclusion. The trusts, if any, remained revocable and under the truster's control.

Court Disposition

Trusts not effectually constituted; recording in Register of Sasines did not operate as delivery to beneficiaries; trusts remained revocable and under truster's control.

Orders

  • First question (whether effectual trusts were created) answered in the negative; other questions unnecessary to answer.