Lucas v Hawkes

This case concerned an appeal to the High Court of Australia from a decision of the Supreme Court of South Australia. The dispute arose from the interpretation of a testator's will, which established a trust fund and directed its income to be divided among his children. The will also contained provisions for the distribution of income to the grandchildren of the testator, who were the children of any of the testator's children who died before the death of the last surviving child of the testator. The primary issue was how the income shares of deceased grandchildren were to be distributed.

The legal issues before the court were: (1) whether the children of a deceased child of the testator took a life interest or an absolute interest in the income share of their deceased parent until the death of the testator's last surviving child; and (2) what happened to the income share of a grandchild of the testator who died during the lifetime of the testator's last surviving child.

The High Court affirmed the decision of the Supreme Court of South Australia. The Court reasoned that the testator's will created a life interest for the children of a deceased child of the testator in the income share of their parent, which was to be distributed until the death of the testator's last surviving child. The Court further held that upon the death of a grandchild of the testator, their share of the income devolved to the personal representative of their deceased parent, rather than being distributed amongst their siblings or continuing to be held for their benefit. The appeal was dismissed.