60
No. 14. Notes of the
Chief Justice on the
Appeal
to the
Full Court.
8th January 1936.
(Continued)
Clause 8
20
L
residual gift
+6
'subject to making provision for payment of
annuities"
implies instructions to set aside funds.
Clause 8 is thus operative
and Clause 13 merely mechanical
Clause 14 shows intention to make settlements.
By self: What of words "if they so think fit" at beginning of 13? Macnamara: They have same effect as postponement of conversion etc. Carmichael & Gee. 1880 A.C. 588.
p. 593-4
clauses of administration and management.
595-postponement of conversion won't be allowed to defeat any rights. Annuitant can resort to any part of estate.
Settlement" or 'no settlement" depends on terms of Will.
As to judgment of Court below.
Property can equally well be described by reference to income as by refer
ence to capital.
Here testator could equally well have directed setting aside of income from
£ X of property in which case settlement would be complete.
Annuity interest on so much property.
Property, estate and interest not to be lumped together.
Here interest" alone is involved.
Gift of annuity is gift of life interest.
Re Campbell and Re Waller preceded Watson's case.
Watson's case established that annuity included interest in residue.
In Carnarvon's and Alington's cases
Point was whether whole estates were "settled" under Settled Land Act.
Never suggested here the whole estate became "settled ".
Re Trafford's Estates (1915) 1 Ch. 9
Throws some doubt on correctness of Carnarvon's and Alington's cases.
If judgment correct.
Appropriation is vital and necessary part of settlement. Appropriation plus Will necessary.
but s. 25 (2) requires no more than Will or other instrument. Appropriation could be effected by book-entry or letter to bank.
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10
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30
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Clauses 8 and 13 together effect settlement.
How can settlement be dependent on act of trustees.
Adjourned to 10 a.m. tomorrow.
In Court-10 a.m. Appeal 14/35-resumed.
Counsel as before.
No. 14.
Notes of the Chief Justice
on the
Appeal to the Full Court. 8th January 1936.
(Continued)
Potter, K.c.
? Did Lady C.'s annuity create settlement.
We say mere grant without setting aside does not create settlement.
I (4) Will-Clause 5-grants annuity simpliciter
Clause 8-object one and only is to provide for distribution
of residuary estate.
"Subject to making provision for annuities" is recognition that this must be done before residuary legatees can be paid-
No direction whatever to appropriate.
Clause 13-Does not merely postpone appropriation-it gives trustees complete liberty to do what they think fit-
appropriation entirely discretionary. No mention of postponement.
No duty in trustees to appropriate No reason here why they should Sterling annuities = £14,500 p.a. needing high sum to cover.
(B) Granting simpliciter can't create settlement
Hanson's Death Duties
105-especial reference to Watson's case
Ilarman's Finance Act. 79.—
Test of life interest passing at death.
In case of life interest, tenant has estate-is c. q. t. of fund which
passes on death to remaindermen.
Annuitant simple has no estate, but mere charge on property.
So in A.G. v. Watson held merely that annuitant has interest in
property which brought case within provisions of s. 2(1) of Act. Had annuities simple been previously deemed settlements what need for
new legislation?
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