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Home > Law > Law glossary > Law glossary
Re Osaba (1979)
Last modified: Thu Feb 23 16:37:37 2006
[1979] 1 WLR 247 (CA). A testator left his whole estate on trust to support his
elderly mother and pay for his daughter's university education. After the mother
had died and the daughter graduated, the question arose what should happen to
the surplus of the trust fund once its purposes had been fulfilled.
On the principle established in ReAbbott1900,
it could be argued that the surplus should be held on ResultingTrust for the
estate of the testator. However, in Abbott there were no surviving beneficiaries,
so such an outcome was not particular unjust. In Osaba the CourtOfAppeal held
that the words of the testator's will could be construed in such a way that
the daughter was entitled to the continued benefit of the trust, which would be
giving effect to the testator's true wishes (which, presumably, he didn't express
very clearly in the will). It's unlikely that this approach would be taken if
there were no surviving beneficiaries (as in Abbott), or even if there were
multiple surviving beneficiaries and allocation of the benefit would be
difficult.
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