Vandenberg v Palmer
| Jurisdiction | England & Wales |
| Judgment Date | 25 March 1858 |
| Date | 25 March 1858 |
| Court | High Court of Chancery |
English Reports Citation: 70 E.R. 85
HIGH COURT OF CHANCERY
Voluntary Trust. Valid Declaration of. How Evidenced. Transfer to avoid Legacy Duty.
[204] vandenbirg v. palmek. March 25, 1858. Voluntary Trust. Valid Declaration of. How Evidenced. Transfer to avoid Legacy Duty. A. V., a merchant in China, directed his correspondents in London to transfer £1000 from his tea account, and employ it in exchange transactions for the benefit of his children. In subsequent letters he wrote to the same correspondents "that he had declined giving any opinion as to the reinvestment of the fund, as he considered he had no further control over it, as it belonged to his children," " that he had appropriated it to them, and his correspondents were to consider it as theirs." The correspondents accordingly opened a separate account, headed "A. V., Esq.,. exchange account on account of children," previously informing him of their intention so to do. Held, that by the first letter a trust was well created in favour of the children, although the fund was still so far in the control of A. V. as to be liable to his drawing : and notwithstanding A. V., in one of the letters, had desired his correspondents to consider it as "subject to the.order of his executors" in the event of his death. The authorities on this subject examined, and G-askell v. Gaskell (2 You. & J. 502) explained. 86 VANDENBERG V. PALMER 4K.&J.205. On the 18th of April 1853 Antonio Vandenberg, late of Canton, merchant, since deceased, wrote from Canton to Messrs. Palmer & Co., merchants, who were his correspondents in London, as follows:-"I beg you will have the goodness to transfer from my tea account a sum, so as to make it £1000, which is to be invested in East India Company's bills, in London, and remitted to Messrs. Dent & Co. here, for them to return you in clear credit, and to be kept so employed with activity for the benefit of my children; and I should like you to do so immediately after the receipt of this, and from its interest and profit (I mean from the said sum) to pay for their schooling and expenses in London, and their passage back when their education is complete. By the August mail, in which Mr. Lopes will return, you will be pleased to send me an account of what you have disbursed with my children up to that time, leaving only £1000 for them employed as above recommended." Messrs. Palmer accordingly, on the 24th of June 1853, remitted to Messrs. Dent & Co. at Canton bills of the East India Company to the value of £1000, and at the same time wrote to Vandenberg as follows:-" In compliance with your instructions, we send by the present [205] mail £1000, or, at 2s. C. R., 10,000 in East India Company's bills on Bengal, to our mutual friends, Messrs. Dent & Co., with orders to remit the proceeds to us in undoubted bills on your account, and shall continue to employ this sum in a similar manner until otherwise directed. We charge the amount to your general account (of which we enclose a sketch), thus leaving £500 at credit of your children's account, which we doubt not you will approve; as it would hardly be safe to reckon upon paying their expenses out of the profits of an exchange operation of so limited character." On the 15th of August 1853 Vandenberg wrote to Messrs. Palmer as follows :- "I note the remittance of £1000 or C. E. 10,000 to Messrs. Dent & Co., who have informed me of the same, and as I being (sic) on the spot, they desired to have my opinion as regards the reinvestment, which of course I declined giving, as I consider myself to have no further control over that amount, as it belongs to my children, which sum I wish you to keep continually employed backwards and forwards for their benefit, and, as long as I am here, I will remit you regularly such sums as may be necessary for their schooling expenses, so that this £1000 may not be touched for the present for the said purposes." On the 24th of October 1853 Messrs. Palmer wrote to Vandenberg as follows :- " We have received from Messrs. Dent & Co. a remittance of £1048, 8s. 3d., being returns for £1000 sent to them in East India Company's bills on your account, per mail of 24th June. We shall return this amount to Messrs. Dent & Co. on your account in bar silver, by mail of 4th November, with instructions to send back the proceeds on most favourable terms. We shall open a separate account to be called * Exchange account /a Children ' for this transaction." [206] An account was accordingly opened in Messrs. Palmer & Co.'s books, headed "A. Vandenberg, Esq., Exchange account % Children in account with Palmer & Co." in which all transactions relating to the £1000, and the exchanges for the same, were duly entered. On the 25th of October in the same year Vandenberg wrote from Canton the following letter to Messrs. Palmer & Co.:-" Mr. E. J. Gilman having been kind enough to promise me and my brother-in-law, Mr. P. Lopes, to look after my children during their stay in England pursuing their education, and I have made arrangements to place in the hands of Messrs. Ash ton & Co. a small sum of money for their schooling and other expenses, that you will not be troubled hereafter with any calls for money on the said account, you will please, therefore, after the payment of Mrs. Webster's fees for six months, ending 10th of June next, &sper my letter of the 10th inst., to add the balance of this account to the £1000 already invested in exchange operations between England and China, and in your and Messrs. Dent & Co.'s hands, which sum has been appropriated by me to them, and you will be pleased to consider as theirs, and subject to the order of my executors in the event of any accident to myself, and quite separate from my general account with your firm." In June 1855 Vandenberg died intestate and in insolvent circumstances. At the date of the letter of the 18th of April 1853 the deceased had three children, all of whom were still infants, and who now, by their next...
To continue reading
Request your trial
- Re Muthukaruppan Chettiar, deceased
- ARSP Palaniappa Chettiar; NN Sockalingam Chettiar
-
Talbot v Cody
...3 Drew. 335. Staoketon v. StapletonENR 14 Sim. 186. Howard v. OakesENR 3 Exch. 143. Lucas v. LucasENR 1 Atk. 270. Vandenberg v. PalmerENR 4 K. & J. 204. Mews v. MewsENR 15 Beav. 529. Grant v. GrantENR 34 Beav. 624. Richards v. RichardsENR 2 B. & Ad. 447. Wheatly v. ParrENR 1 Keen. 551. Smit......
- Commissioner of Stamp Duties (Qld) v Jolliffe