Barrett v Barrett and Others
Barrett v Barrett and Others (Civil Case No. 22 of 1940 (O.S.)) [1940] EACA 29 (1 January 1940)
The court held that the principle established in In Re Atkinson, Barbers' Company v. Grose-Smith applies: when a trust fund is invested in mortgages that realize less than the total principal and interest due, the proceeds must be apportioned between capital and interest in proportion to the amounts outstanding for each. This ensures rateable equality in the incidence of loss between the life tenant (entitled to income/interest) and the remaindermen (entitled to capital). The court rejected the alternative approach suggested in Smith v. Law Guarantee and Trust Society Ltd., finding the facts…
Source excerpt
- Trusts Of Will
- Apportionment Of Funds
- Mortgage Realization
- Life Tenant And Remaindermen