M’Caig’s Trustees v Kirk-Session (1915)

Key Notes

• Facts: A testatrix ordered the creation of 11 bronze statues to honour her parents and 9 children, with each statue costing £1,000. The statues were to be erected in the form of an amphitheatre on a hill in Oban, Scotland. The estate's income was to cover the costs of maintenance, and the beneficiaries were to wait 8 years before inheriting.

• Outcome: The court struck down the trust, finding it to be wasteful and unreasonable. The statues were deemed a "sheer waste of money" as they did not benefit anyone and lacked any meaningful connection to the beneficiaries or the town of Oban.

• Reasoning: The court ruled that there was no valid purpose behind the creation of the statues, as they did not serve a clear benefit to the beneficiaries or the public. The statues were considered an extravagant and wasteful use of the estate's resources.

Impact & Analysis

• Wastefulness of Trusts: This case underscores the principle that trusts which involve wasteful or extravagant expenditure without a meaningful purpose or benefit to the beneficiaries will be struck down. A trust must have a valid, reasonable intention behind it.

• Public Benefit and Purpose: The decision highlights that a trust should benefit the beneficiaries or the public in a practical and identifiable way. In this case, the statues were not linked to any significant public or personal purpose.

• Legal Oversight of Testamentary Gifts: The ruling reflects the court's willingness to intervene when the intentions of a testator lead to a manifestly unreasonable or wasteful result, even when the testator’s wishes are clear. The trust was considered invalid because it lacked a reasonable connection to the beneficiaries or the community.

• Boundaries of Testamentary Freedom: This case illustrates that while testamentary freedom is generally upheld, it is not absolute, especially where the testator’s wishes are seen as irrational or wasteful.