Thomson's Trustees v Davidson [1947] ScotCS CSIH_1 (18 July 1947)

Thomson's Trustees v Davidson [1947] ScotCS CSIH_1 (18 July 1947)

Trustees are not bound to continue to hold investments if, in their judgment, doing so would imperil the safety of the trust estate, regardless of the trustor's direction to retain such investments.

Citation
[1947] ScotCS CSIH_1
Parties
Petitioner: Thomson's Trustees; Respondent: Davidson
Jurisdiction
Scotland
Judgment Date
18 July 1947
Procedural Posture
Petition for Directions / Judgment
Outcome
Petitioners are not bound to continue to hold the investments if convinced that doing so would imperil the safety of the trust estate.
Legal Topics
Trustee Powers, Investment of Trust Property, Interpretation of Trust Instruments
Trusts and Estates Property Law Trustee Powers Investment of Trust Property Interpretation of Trust Instruments

Case Brief

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Parties

Thomson's Trustees

Petitioner

Davidson

Respondent

Procedural Posture

Petition for Directions / Judgment

Legal Issues

  1. 1 Whether trustees are bound to retain investments as directed by the trustor even if doing so would imperil the trust estate
  2. 2 Interpretation of investment clause in trust settlement

Ratio Decidendi

Trustees are not bound to continue to hold investments if, in their judgment, doing so would imperil the safety of the trust estate, regardless of the trustor's direction to retain such investments.

Court Disposition

Petitioners are not bound to continue to hold the investments if convinced that doing so would imperil the safety of the trust estate.

Orders

  • Trustees are entitled to realise investments if necessary for the preservation of the trust estate.