Legal Definitions - per collationem bonorum

Per collationem bonorum is a principle in Scots law that requires certain heirs to account for significant gifts or advancements they received from a deceased person during that person's lifetime. This accounting, known as 'collation,' ensures fairness when distributing the 'legitim' – a portion of the deceased's movable estate that children are legally entitled to inherit, regardless of a will.

Here are some examples illustrating this principle:

• Scenario: Educational Expenses

  Mr. Henderson has two children, Sarah and Tom. During his lifetime, Mr. Henderson paid for Sarah's entire university education and postgraduate studies, a substantial financial investment. Tom, however, received no comparable financial assistance for his education. Upon Mr. Henderson's death, his will leaves his entire estate to a charity. However, under Scots law, Sarah and Tom are entitled to a share of the 'legitim' from their father's movable estate.

  How it illustrates per collationem bonorum: To ensure fairness in the distribution of the legitim, Sarah would be required to bring the value of her educational expenses into account. This means that when calculating the legitim fund, Sarah's lifetime benefit is notionally added back in. Tom would then receive a larger portion of the actual cash legitim to balance out the significant lifetime advantage Sarah received, ensuring an equitable distribution of the forced heirship portion.

• Scenario: Property and Asset Gifts

  Mrs. MacLeod has three children: Isla, Rory, and Ewan. Five years before her death, Mrs. MacLeod provided Isla with a substantial down payment for her first home. Two years later, she gifted Rory a valuable collection of antique Scottish silver. Ewan received no significant gifts from his mother during her lifetime. When Mrs. MacLeod passes away, her movable estate is subject to the legitim.

  How it illustrates per collationem bonorum: Before the legitim is divided among the children, Isla and Rory would be required, per collationem bonorum, to account for the value of the house down payment and the antique silver collection, respectively. These values are notionally added to the total legitim fund for calculation. This ensures that Ewan, who received no such lifetime advancements, receives a proportionally larger share of the actual remaining legitim fund, thereby equalizing the distribution among all three children, taking into account the lifetime gifts.