trust becomes irrevocable as against them, while as against other creditors, to whom it has not been communicated, it remains revocable (i).

not apply to

creditors

settlor's death.

The doctrine does not apply to a provision for cre- Doctrine does ditors coming into operation after the settlor's death. provision for Thus, in a case where by a voluntary deed lands were coming into limited to uses in strict settlement, including the effect after limitation to trustees of a term to commence at the settlor's death in trust to accumulate the rents in order to raise a fund for payment of the mortgages charged on the estate, it was held that the mortgagees were cestuis que trust, and consequently that the trust could not be put an end to by a person who by executing a disentailing deed had become owner in fee simple in possession, subject to the term (k).

III. Stamps on settlements.

settlements.

By the 33 & 34 Vict. c. 97, the following stamp Stamps on duties are made payable under the head of "settlement" in the schedule:

Any instrument, whether voluntary, or upon any good
or valuable consideration, other than a bonâ fide
pecuniary consideration, whereby any definite and
certain principal sum of money (whether charged
or chargeable on lands or other hereditaments or
heritable subjects, or not, or to be laid out in the
purchase of lands or other hereditaments or heritable
subjects or not), or any definite and certain amount
of stock, or any security, is settled, or agreed to be
settled, in any manner whatsoever.

£

s. d.

For every £100, and also for any fractional
part of £100, of the amount or value of the

property settled, or agreed to be settled...... 0 5 0

(i) Johns v. James, 8 C. D. 744.

(k) Re Fitzgerald's Settlement,

37 C. D. 18.

Exemption.

Instrument of appointment relating to any
property in favour of persons specially
named or described as the objects of a
power of appointment created by a pre-
vious settlement, stamped with ad valorem
duty in respect of the same property, or
by will, where probate duty has been paid
in respect of the same property as personal
estate of the testator.

As settlements frequently contain covenants for payment of an annuity, it will be useful to mention that under the same Act a bond, covenant, or other instrument for payment of an annuity, is charged as follows:

(1) Being the only or principal or primary
security for any annuity (except upon the
original creation thereof by way of sale or
security), or of any sum or sums of money
at stated periods, not being interest for any
principal sum, secured by a duly stamped
instrument, nor rent reserved by a lease or
tack:

For a definite and certain period, so that
the total amount to be ultimately pay-
able can be ascertained.

For the term of life, or any other indefi-
nite period :

For every £5, and also for any fractional part of £5 of the annuity or sum periodically payable...... (2) Being a collateral, or auxiliary, or additional or substituted security for any of the abovementioned purposes where the principal or primary instrument is duly stamped:

Where the total amount to be ultimately
payable can be ascertained.

The same ad valorem duty as a bond or covenant for such total amount.

£ s. d.

026

The same ad valorem duty as a bond or covenant of the same kind for such total amount.

And the Act contains the following provisions relating

to stamps on settlements:

policy or

Sect. 124. Where any money which may become due or pay- Settlement of able upon any policy of insurance, or upon any security security. not being a marketable security, is settled or agreed to be settled, the instrument whereby such settlement is made or agreed to be made, is to be charged with ad valorem duty in respect of such money.

Provided as follows:

policies.

(1) Where in the case of a policy of insurance no provision Proviso as to
is made for keeping up the policy, the ad valorem duty is
to be charged only on the value of the policy at the date
of the instrument.

(2) If in any such case the instrument contains a state-
ment of such value, and is stamped in accordance with
such statement, it is, so far as regards such policy, to be
deemed duly stamped, unless or until it is shown that
such statement is untrue, and that the instrument is in
fact insufficiently stamped.

when not to be

Sect. 125. (1) An instrument chargeable with ad valorem Settlements duty as a settlement in respect of any money, stock, or charged as security, is not to be charged with any further duty by securities. reason of containing provision for the payment or transfer of the same money, stock, or security.

meantime.

(2) Where any money, stock, or security is settled, or Where rever-
sionary in-
agreed to be settled, by a person who has only a rever- terest settled,
sionary interest therein, and the instrument whereby exemption as
regards annual
such settlement is made, or agreed to be made, contains sum payable in
a covenant by the person entitled in possession to the
interest or dividends of such money, stock, or security,
for the payment, during the continuance of such posses-
sion, of any annuity or yearly sum not exceeding interest
at the rate of £4 per cent. per annum upon the amount

Where several instruments, one only to be charged with ad valorem duty.

Penalty for not stamping a settlement within the prescribed period.

or value of such money, stock, or security, such instru-
ment shall not be charged with any duty in respect of
such covenant.

Sect. 126. (1) Where several instruments are executed for
effecting the settlement of the same property, and the
ad valorem duty chargeable in respect of the settlement
of such property exceeds ten shillings, one only of such
instruments is to be charged with the ad valorem duty.
(2) Where a settlement is made in pursuance of any pre-
vious agreement or articles upon which any ad valorem
settlement duty exceeding ten shillings has been paid in
respect of the same property, such settlement is not to
be charged with any ad valorem settlement duty.

(3) In each of the aforesaid cases, the instruments not
chargeable with ad valorem duty are to be charged with
the duty of ten shillings.

If a settlement is not stamped within 30 days after it is first executed, or if executed abroad, after it is first received in the United Kingdom, the settlor is liable to forfeit £10 (7).

OF STOCK BELONGING TO INTENDED HUSBAND.

Parties.

No. I.

SETTLEMENT of PERSONAL ESTATE belonging to the intended HUSBAND, for the benefit of the HUSBAND and WIFE, successively for life, and after the death of the SURVIVOR, for the ISSUE of the marriage, with usual clauses.

day of

BETWEEN

THIS INDENTURE, made the
A. B., of, &c. (intended husband), of the first part, C. D., of,
&c. (intended wife), of the second part, and E. F., of, &c.,
G. H., of, &c., and I. K., of, &c. (trustees) (m), of the third

(1) 51 Vict. c. 8, s. 18.

(m) The number of trustees in a settlement varies from two to four. In the above Precedent there are three, but it can be easily adapted to the case of two or four trustees.

OF STOCK BELONGING TO INTENDED HUSBAND.

part: WHEREAS a marriage is intended shortly to be solemnised between the said A. B. and the said C. D.: AND WHEREAS the said A. B. has before the execution of these presents transferred the sum of £ two and three quarters per cent. consolidated stock into the names of the said E. F., G. H., and marriage. I. K., in the books of the Governor and Company of the Bank

:

Recital of intended

stocks to

part.

of stocks, in

intended hus

marriage.

to retain pre

change same.

of England, and has assigned the sum of £- debenture stock Transfer of of the Railway Company unto the said E. F., G. H., and trustees. I. K. by a proper deed for that purpose: NOW THIS IN- Witnessing DENTURE WITNESSETH, that in consideration of the said intended marriage, IT IS HEREBY AGREED AND DECLARED that Trustees shall the said E. F., G. H., and I. K. (hereinafter called "the trus- stand possessed tees"), shall stand possessed of the said sum of £ consoli- trust for dated stock, and the said sum of £- railway debenture band until stock: IN TRUST for the said A. B., until the said intended marriage AND after the said intended marriage IN TRUST that After marriage the trustees (n) shall either retain the same, or, with the consent sent investin writing of the said A. B. and C. D. during their joint lives, ments, or and of the survivor of them during his or her life, and after the decease of such survivor, at the discretion of the trustees, sell the same, and invest the moneys produced by such sale, with power from time to time with such consent, or at such discretion. as aforesaid, to vary the investments, and shall stand possessed of the said consolidated stock and debenture stock, and the investments for the time being representing the same (hereinafter called the trust funds): IN TRUST to pay the income thereof to the said A. B. during his life, and after his decease to the said C. D. during her life, and after the decease of the survivor of the said A. B. and C. D., IN TRUST for such child, children, or remoter issue (0) of the said intended marriage, at such age time, or ages or times (not being earlier as to any object of this

or

(n) It was formerly usual to provide that the trust might be exercised by the survivors and survivor of the trustees, and the executors or administrators of such survivor. As regards the survivors and survivor, this is now provided for by the Conveyancing Act, 1881, s. 38, and as regards the executors or administrators of the last survivor, it is generally better, if all the trustees die, to appoint new ones under the statutory

power.

(0) This power is good, although the class is not limited in terms to issue born within the period allowed by the rule against perpetuities, but it must be exercised consistently with that rule. Routledge v. Dorrill, 2 Ves. jun. 357.

To pay income to husband and sively for life, in trust for the

wife succes

issue of

marriage as husband and

wife or survivor shall

appoint.