Reid's Trustees v. Dawson [1915] UKHL 544 (12 March 1915)

Reid's Trustees v. Dawson [1915] UKHL 544 (12 March 1915)

The bequest of £3000 was a demonstrative legacy, not limited to the insurance fund; the trustees were under a duty to pay the full sum of £3000 to Miss Dawson as soon as conveniently possible, making up any deficiency from the general estate. The word 'prefer' did not confer a discretion to withhold payment. The annuity was only for Miss Dawson's life and did not extend to her son.

Citation
[1915] UKHL 544
Parties
First Parties (trustees): Henry Reid, manufacturer, Dunfermline, and others, trustees acting under the trust-disposition and settlement of the late Robert Reid; Second Party (legatee): Miss Christina Dawson; Third Party (claimant): Robert Reid (son of Miss Christina Dawson)
Jurisdiction
United Kingdom
Judgment Date
12 March 1915
Procedural Posture
Special Case (construction of Testamentary Bequest) / Appeal to House of Lords
Outcome
Appeal allowed
Legal Topics
Construction of Wills, Demonstrative Vs. Specific Legacies, Trustee Discretion, Testamentary Intention
Succession Law Trusts and Estates Construction of Wills Demonstrative Vs. Specific Legacies Trustee Discretion Testamentary Intention

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Parties

Henry Reid, manufacturer, Dunfermline, and others, trustees acting under the trust-disposition and settlement of the late Robert Reid

First Parties (trustees)

Miss Christina Dawson

Second Party (legatee)

Robert Reid (son of Miss Christina Dawson)

Third Party (claimant)

Procedural Posture

Special Case (construction of Testamentary Bequest) / Appeal to House of Lords

Legal Issues

  1. 1 Whether the bequest of £3000 was imperative or discretionary for the trustees
  2. 2 Whether the sum was limited to the insurance fund or payable from the general estate if the fund was insufficient
  3. 3 Whether the annuity was for the life of Miss Dawson only or extended to her son

Ratio Decidendi

The bequest of £3000 was a demonstrative legacy, not limited to the insurance fund; the trustees were under a duty to pay the full sum of £3000 to Miss Dawson as soon as conveniently possible, making up any deficiency from the general estate. The word 'prefer' did not confer a discretion to withhold payment. The annuity was only for Miss Dawson's life and did not extend to her son.

Court Disposition

Appeal allowed

Orders

  • Trustees are under a duty to pay Miss Dawson the capital sum of £3000 as soon as conveniently possible, making up any deficiency from the general estate.
  • The annuity is only for Miss Dawson's life and does not extend to her son.