A testator, the residue of whose estate was divisible under his settlement in certain shares, directed his trustees as soon as convenient after his death to pay one of the shares to one of his sons, and to pay one-fourth of a share to each of his daughters, the remaining share and parts of shares being directed to be held for behoof of his other son and his daughters in liferent, and their children or certain of their children in fee. He authorised and desired his trustees to continue his interest in a certain colliery joint-adventure for such length of time after his death as they might consider expedient, and empowered them to assign any of his securities to any of the beneficiaries in payment of any capital sums falling to them, and in so doing, and for the purpose of ascertaining the amount of residue falling to be divided, he directed that his interest in the colliery should be valued by his trustees, such valuation not being subject to challenge by the beneficiaries. The trustees not having made a division of the residue, and having retained the testator’s interest in the colliery joint-adventures, questions arose between the liferenters and the fiars as to the profits therefrom. Held that the trustees ought to proceed forthwith to a division of the residue of the estate, and for that purpose ought to value the deceased’s interest in the colliery adventure, and that in case they should allot said interest or a portion thereof to any settled share, the liferenter would be entitled to pounds 4 per cent. per annum on the sum at which said interest or portion thereof so allotted had been valued.
Observed ( per Lord Davey and Lord Lindley) that, although interest was allowed at 4 per cent., that being the rate generally allowed, it was worthy of consideration whether in future, having regard to the fall in the rate of interest, more than 3 per cent. should be allowed in such cases.
Judges:
Lord Macnaghten, Lord Davey, Lord Brampton, and Lord Lindley
Citations:
[1902] UKHL 66, 40 SLR 66
Links:
Jurisdiction:
Scotland
Wills and Probate
Updated: 05 July 2022; Ref: scu.630802