Death, Divorce and Defective Drafting

Published date01 May 2018
Date01 May 2018
Pages307-313
Author
DOI10.3366/elr.2018.0491
INTRODUCTION

The law of survivorship destinations is notoriously complex and ill-understood. In 1984, Professor Gretton stated that it was “33 years since Lord President Cooper denounced destinations in titles to heritage as anachronistic and productive of litigation (Hay's Tr v Hay's Trs 1951 SLT 170). Conveyancers disregarded this advice. The litigation has continued”.1 A further thirty-three years later, litigation is still being generated on this topic as shown by the recent cases of Povey v Povey's Executor Nominate,2 Hill v Hill 3 and Machin's Trustees (Chalmers) v Machin.4 This note will not consider these cases, which have been discussed elsewhere.5 Instead, I will analyse recent legislative provisions concerning survivorship destinations in the Succession (Scotland) Act 2016 (“2016 Act”), the drafting of which has unintentionally contributed to the complexity of this area of law.

REFORMING THE LAW OF SUCCESSION

To remind ourselves briefly of this difficult area of law, it is useful to summarise what a survivorship destination is before considering the way in which the law has been recently amended. A destination is a provision which regulates what happens to a particular right in the event of the death of the grantee. A special destination is one which is contained in the title to property. A survivorship destination is a type of special destination, which provides that title is held by “A and B and the survivor”. This is co-ownership of property, with each pro indiviso share being subject to a destination in favour of the other co-owner. In other words, one half is owned by A whom failing B and the other is owned by B whom failing A. The result of this destination is that when one co-owner dies, the deceased's share transfers automatically to the surviving co-owner without the need for further conveyancing.6 A survivorship destination is commonly inserted into the title of property when it is purchased by spouses or civil partners. In 2009, the Scottish Law Commission noted that approximately 42% of homes in Scotland are owned by spouses or civil partners, and about 75% of these titles include a survivorship destination,7 although it is possible these figures underestimate the incidence of such destinations.8

The law of survivorship destinations has recently been amended by the 2016 Act. The 2016 Act was the first piece of primary legislation wholly dedicated to succession since 1964. Despite much of the Scottish law of succession being badly in need of reform and the numerous Scottish Law Commission publications on the topic, significant reform has not been forthcoming so far.9 Before undertaking wide-ranging changes, the 2016 Act was intended to implement some reforms on the “technical” aspects of succession in order to make the “law on succession fairer, clearer and more consistent”.10 The aim of the 2016 Act stated in the accompanying Policy Memorandum to the Bill was “addressing anomalies within the current legislative framework rather than the more comprehensive and controversial proposals”11 which would, presumably, follow in due course.12

One of these technical aspects was the effect on wills and survivorship destinations of the termination of a marriage or civil partnership through divorce, dissolution or annulment. Before the 2016 Act, termination of a marriage or civil partnership did not revoke provisions contained in a pre-existing will in favour of the (now) ex-spouse or ex-civil partner unless it was clear that the provisions were conditional on the legatee remaining a spouse or civil partner.13 The Scottish Law Commission recommended that on termination of a marriage or civil...

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