## Facts

- The testator created a trust for the benefit of his children, with provisions for distributing the trust fund upon the death of the last surviving child.
- One of the children, a beneficiary under the trust, died before the testator.
- The central question arose whether the gift to the predeceased beneficiary lapsed or could pass to that beneficiary’s estate or descendants.
- The court’s decision turned on the testator’s expressed intent, the design of the trust, and sections of the Wills Act 1837 regarding lapse and exceptions.

## Issues

1. Whether a gift to a beneficiary who predeceases the testator lapses or can be preserved for that beneficiary’s estate.
2. Whether the trust structure and the testator’s intent create an exception to the doctrine of lapse under the Wills Act 1837.
3. How equitable principles affect the distribution of trust assets when a beneficiary predeceases the testator.

## Decision

- The court held that the testator intended the trust to benefit all his children, including those who died before him.
- It found the trust structure postponed the distribution until the death of the last surviving child, which created an exception to the doctrine of lapse.
- The court ordered that the gift to the predeceased beneficiary should be preserved and pass to the beneficiary’s estate or descendants, as if the beneficiary had survived the testator.
- Equitable principles were applied to ensure fair distribution in accordance with the testator’s intent.

## Legal Principles

- The doctrine of lapse, as codified in the Wills Act 1837, generally provides that a gift fails if the beneficiary dies before the testator, unless an exception applies.
- The testator’s intent is critical in interpreting wills and determining whether gifts lapse.
- Trust structures can operate so that the doctrine of lapse does not apply, especially where benefits are postponed until a triggering event after the testator’s death.
- Courts may apply equitable principles to preserve gifts and give effect to the testator’s wishes.

## Conclusion

Re Gardner (No 2) [1923] 2 Ch 230 confirms that, where a trust and the testator’s intent indicate, a gift to a beneficiary who predeceases the testator may be preserved for the beneficiary’s estate instead of lapsing, particularly when equitable principles and trust construction support such an outcome.