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Re Brown, Deceased (1962) QWN 45
Re Brown, Deceased (1962) QWN 45
Re Brown, Deceased (1962) QWN 45
Re BRO W N , DECEASED
45. Will— Construction— Bequest to trustee as agent for finance
company to be formed— Yoid for uncertainty— Unlimited gift of
income prima facie gift of corpus—Inclination against intestacy.
By his will the testator provided inter alia that he bequeathed the balance
of his estate to a certain person “in trust as agent for a Finance Company
to be formed. The income from this investment is to be shared equally by
two persons named herein and on their demise , to be shared by their children
in equal shares”.
Held, th at the bequest to a trustee as agent for a finance company to be
formed, is too vague to convey any real meaning at all and is void for
uncertainty.
Held, further, th at in the circumstances of the instant case, there is no
intestacy as to the balance of the estate as there are clear indications of what
the testator meant to leave and to whom he m eant to leave it; the failure
of the proposed tru st to form a finance company is only a failure of a mode
of investment the object of which is to give a beneficial interest to life
ten an ts and, on their respective demises (as a m atter of interpretation and
necessary im plication) as to the corpus to their children; an unlim ited gift
o f income is prima facie a gift of the corpus.
O RIGIN A TING SUMMONS.
Queensland Trustees Limited as executor and trustee of the will of George
Aubrey P atten Brown (bearing date 23rd December, 1959), caused an
originating summons to be issued to determ ine certain questions arising
under the will. The questions and the m aterial fects are set out in the
judgm ent.
Fairleigh, for the applicant: The direction to form a finance company is
void for uncertainty and vagueness as is apparent from the questions which
are set out in the summons as the alternative to Q. 1. Accordingly there
is no valid or effective appointm ent of McLucas, and Queensland Trustees is
the sole executor and sole trustee of the whole estate and has full power
of sale and management thereof. The court leans against an intestacy and
th ere is an unlimited gift of income to the children of the classes set out
in Q. 1 (c), so that there is a gift of corpus. The hotchpot provision in
cl. 4 is a divesting one and should be construed strictly and so has no
•application in the events which have happened. He referred to “Re Kolb’s
Will Trusts. Lloyds Bank Ltd. v. Ullmann and others” ([1961] 3 All E.R.
811); Qualter, Hall & Co. Ltd. v. Board of Trade and another ([1961] 1 All
E.R. 210); Re Mordan ([1905] 1 Ch. 515); Re Turner ([1897] 1 Ch. 536);
Khoo Tek Keong v. CKng Goo Tuan Neoh ([1934] A.C. 529); Learoyd v.
Whitely ([1889] 12 A.C. 727); Shaw v. Cates ([1909] 1 Ch. 389, at pp. 396
and 397); The Trustees and Executors Acts, 1897 to 1961, s. 4.
Draney, for C. T. Brown and L. E. Wilson in their own right and as
representatives for their respective children born and to be born, adopted
the argum ent and proposed answers of the applicant and further referred to
Summergreene v. Parker ( [1950] 80 C.L.R. 304, at p. 3 1 8 ) ; Vickery v. Woods
([1951] 85 C.L.R. 336, at p. 348); Fell v. Fell ([1922] 31 C.L.R. 268, at
p. 284); Jarm an on W ills, 8th ed., p. 1172.
O'Sullivan, for A. J. Brown as representative of the persons who would
take in the event of an intestacy, agreed with the proposed answers with the
exception of Q. 1 (e) as to the disposal of the balance of the estate and
subm itted th at there was an intestacy, and as a corollary thereto that Q. 1 (d)
should be answered— No. H e subm itted th a t there was not an absolute gift
in the first place but a complete failure of a tru st with a resulting trust
and an intestacy. He referred to U nderhill’s Law of Trustees, 10th ed.,
pp. 172-176. Hancock v. Watson ([1902] A.C. 14); Lassence v. Tierney
([1849] 1 M ac & G. 551).
Curia advisari vult.
104 THE QUEENSLAND LAW REPORTER
(a) Does the said will contain a valid and effective appointm ent of
Ronald M cLucas in respect of ‘the balance’ of the estate as trustee
or as agent and for w hat purposes?
(b) Is Queensland Trustees Ltd. the sole executor and sole trustee
in respect of all of the estate of the said deceased?
(c) If Ronald M cLucas desires to be discharged or refuses to act
as trustee or agent under the said will is it necessary th a t any
other person should be appointed in his place?
(d) Does the full power of sale and m anagement conferred by the
said W ill on Queensland Trustees Ltd. extend to ‘the balance’ of
the said estate?
(e) Is ‘the balance’ of the said estate to be held as to one-half thereof
for Cedric Tyson Brown for life, and upon his death for his children
equally, w hether born before or after the death of the said
T estator with representation for such children of the said Cedric
Tyson Brown who, having survived the said Testator, die during
the lifetim e of the said Cedric Tyson Brown absolutely both as to
capital and income and the other half thereof for Doris Lillian Ethel
W ilson for life and upon her death for her children equally,
whether born before or after the death of the said Testator with
representation for such children of the said Doris Lillian Ethel
Wilson who having survived the said testator die during the lifetime
of the said Doris Lillian Ethel Wilson absolutely both as to capital
and income or for w hat other persons and in w hat interests is ‘the
balance’ of the said estate to be held?
IN TH E A LTERNA TIV E to (1)
(2) I s the said provision in the first sentence of the fifth dispositionary
clause of the said W ill valid and binding and if so then
(a) Is a firm to be registered under ‘The Registration of Firm s Act
1942 to 1958’ and if so who are to be the members thereof and
what are the limits of the businesses which that firm may conduct
and w hat are the lim its of its borrowing powers and its lending
powers and w hat investments are authorised for it and on w hat
security, or is a lim ited company to be incorporated under ‘The
Companies Acts 1931 to I960’ and if so who are to be the founders
the directors and the shareholders of that company and what are
to be its capital and shareholding structure and its objects, and
w hat are the limits of the businesses which it may conduct and
w hat are the limits of its borrowing powers and what investments
are authorised for it and on w hat security?
(b ) Is Queensland Trustees Ltd. entitled to or bound to take any, and1
w hat p art, in the form ation or m anagement and control of th a t
firm or th a t company (as the case may be) and is Queensland
T rustees Ltd. entitled or bound to receive the income or profits
or dividends of th at firm or company (as the case may be) fo r
distribution to beneficiaries under the said W ill?
(c) If Ronald M cLucas desires to be discharged of or refuses to act
as tru stee or agent under the said Will, is it necessary th a t any
other person should be appointed in his place or may Queensland
T rustees Ltd. act solely in respect of the trusts for the whole
of the said estate and will the full power of sale and management
conferred by the said W ill on Queensland Trustees Ltd. thereupon
extend to ‘the balance’ of the said Estate?
(d) Does Ronald M cLucas have any and what functions to perform
in the adm inistration of the estate prior to ‘the balance’ of the
estate being made available to him by Queensland Trustees Ltd.
(3) W ith respect to Clause 4 of the said W ill and in the circumstances
which have happened, is there any operation for the requirem ent in the
106 THE QUEENSLAND LAW REPORTER