H. M. Advocate v. Alexander's Trustees [1905] ScotLR 42_307 (10 January 1905)

H. M. Advocate v. Alexander's Trustees [1905] ScotLR 42_307 (10 January 1905)

Provisions in marriage contracts, including annuities, lump sums, and interim aliment for the widow, are not deductible as debts for estate duty under section 7 of the Finance Act 1894 because they are not incurred for full consideration in money or money's worth wholly for the deceased's own use and benefit; the true consideration is the marriage itself. Settlement estate duty is exigible on the settled property as per binding precedent.

Citation
[1905] ScotLR 42_307
Parties
Pursuer/respondent: H. M. Advocate; Defenders/reclaimers: Alexander's Trustees
Jurisdiction
Scotland
Judgment Date
10 January 1905
Procedural Posture
Civil / Appeal (reclaiming Motion) From Lord Ordinary's Interlocutor
Outcome
appeal dismissed; judgment of Lord Ordinary adhered to
Legal Topics
Estate Duty, Deductibility of Debts, Marriage Contract Provisions, Finance Act 1894, Property Passing on Death, Settlement Estate Duty
Revenue Law Succession Law Trusts and Estates Estate Duty Deductibility of Debts Marriage Contract Provisions Finance Act 1894 Property Passing on Death +1 more

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Parties

H. M. Advocate

Pursuer/respondent

Alexander's Trustees

Defenders/reclaimers

Procedural Posture

Civil / Appeal (reclaiming Motion) From Lord Ordinary's Interlocutor

Legal Issues

  1. 1 Whether provisions in marriage contracts are deductible as debts for estate duty under section 7 of the Finance Act 1894
  2. 2 Whether interim aliment for widow is deductible as a debt for estate duty
  3. 3 Whether settlement estate duty is exigible on settled property under the deceased's testamentary writings

Ratio Decidendi

Provisions in marriage contracts, including annuities, lump sums, and interim aliment for the widow, are not deductible as debts for estate duty under section 7 of the Finance Act 1894 because they are not incurred for full consideration in money or money's worth wholly for the deceased's own use and benefit; the true consideration is the marriage itself. Settlement estate duty is exigible on the settled property as per binding precedent.

Court Disposition

appeal dismissed; judgment of Lord Ordinary adhered to

Orders

  • Defenders to deliver full account of the estate as regards estate duty and settlement estate duty
  • Deductions for marriage contract provisions and interim aliment disallowed