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By his trust-settlement a testator directed his trustees to divide the residue of his estate into three equal portions. One portion was to be paid to the issue of a daughter who had predeceased him, another to another daughter who had survived him, whom failing to her children equally among them, and the remaining one-third, from which was to be deducted certain advances made during the testator's life (which advances were to be reckoned into the general amount of the residue before making the division), was to be held by the trustees for the only remaining daughter, a widow, who also survived him, in liferent allenarly, the capital to be paid after her death in certain proportions to her two children; the right of those children to these sums was declared to vest at the testator's death. The deed provided that the provisions in favour of the testator's “daughters and grand children” should be in full implement of any obligations he might have come under by other deeds, and also of all legitim and other claims competent in any manner of way. The last-mentioned daughter renounced the provisions of the settlement and took her legal rights. Held (following Fisher v. Dixon, 6 W. & S. 431, from which the case was held indistinguishable) that the children of the daughter who took her legitim had a separate and independent right under the settlement which was not affected by their mother's election to take legitim.
Mr Andrew Snody, S.S.C., died on 18th March 1881. He was predeceased by his only son John Morison Snody, and by one of his daughters Isabella Snody or Mrs Wallace, who was survived by her husband and three sons. Mr Snody had two other daughters who survived him. One of them married a Mr Gibson and had issue, who, as well as their parents, survived Mr Snody. The other became Mrs Millar; at the date of Mr Snody's death she was a widow with two children, a son and daughter. For some time before his death Mr and Mrs Gibson and their children resided with him. By his trust-disposition and settlement, dated 8th October 1880, and recorded 9th May 1881, Mr Snody assigned and conveyed to the persons therein named, as trustees for the ends and purposes mentioned in the deed, his whole estates, heritable and moveable. The trust purposes were (l) payment of debts; (2) a special provision to Mrs Gibson of the household furniture, books, and silver plate. In the third place, the trustees were directed to sell the heritable property of the deceased, and to divide the whole residue of the estate (including certain sums advanced to Mrs Millar amounting to about £1800, and sums advanced to one of the children of Mrs Wallace) into three equal parts, one of which parts, under deduction of the £1800 just mentioned, was to be held by them for the liferent behoof of Mrs Millar, and at her death was to be divided by them as follows:—“They shall pay the sum of £1000 to her daughter Helen Lewins Millar, and her heirs and assignees whomsoever, and they shall pay the remainder to her son William Somerville Millar, and his heirs and assignees whomsoever, the legacies to my grandchildren being intended to vest at my death.” The second share of the residue was to be divided among the children of Mrs Wallace, the truster's predeceasing daughter, in certain proportions mentioned in the deed. The remaining share was to be paid over by the trustees to the truster's daughter Mrs Gibson, already referred to, Whom failing to her children equally, and the survivors and survivor of them, share and share alike. The deed further went on to declare ‘that the provisions in favour of my daughters and grandchildren hereinbefore written shall be accepted by them in full implement of any sums of money which I may have undertaken to pay to any of my daughters or their issue under their contracts of marriage or otherwise, and also in full satisfaction to them of all legitim, bairns’ part of gear, or other claim competent to them on my death in any manner of way.”
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Mrs Gibson died in September 1881, leaving a trust-disposition by which she gave the annual income of her estate to her husband and the capital to her children equally.
Mr Snody's trustees proceeded to realise and divide the estate in terms of the trust-deed, but the truster's daughter Mrs Millar intimated to them her rejection of the provisions in her favour contained in the said trust-disposition and settlement, and her determination to claim her legal rights in the truster's estate, and she further disputed the right of the trustees to deduct from her interest in the estate the advances made to her by the truster and referred to in his said settlement.
Other claims not material to the question here decided were also made against the trustees, and the present action of multiplepoinding was accordingly raised by them.
It was pleaded for Mrs Millar, inter alia, that she was entitled to renounce the provision in her favour contained in the truster's settlements, and to claim her share of legitim, which was one-fourth of his moveable estate. Mrs Millar's children claimed that one-third of the residue should be paid to them, in the proportion of £1000 to Helen Lewins Millar, the remainder to William Somerville Millar, as provided by the passage of Mr Snody's deed quoted above, or otherwise that the said one-third should be invested for payment to them on the death of their mother.
It was pleaded, inter alia, for Mrs Gibson's trustees—“On a sound construction of Mr Snody's trust-deed, the provisions in favour of Mrs Millar and her family was a single and indivisible gift conditional on Mrs Millar's surrender of legitim, and she having claimed legitim her children cannot also claim the fee of the provision.
Other claims were made which need not here be detailed.
On the 3d November 1882 the Lord Ordinary (M'Laren) pronounced the following interlocutor:—“Finds that in consequence of the truster's daughter Mrs Anne Somerville Snody or Millar having claimed her legitim, the income of the share of residue destined to her and her family vests in the trustees during her lifetime, and is to be applied by them in compensation of the legitim received by her: Finds that the children of the said Mrs Anne Somerville or Millar have a separate and independent interest in the fee of said provision, and that their interest is not affected by their mother's election, and to that extent repels the pleas of the claimants Gibson's trustees: On the other points of the case, which depend on fact, allows to each of the claimants a proof before answer of their respective averments, reserving in the meantime the question of expenses; and grants leave to reclaim.
“ Opinion.—The chief question which was argued in this case arises upon the fifth plea for the trustees of Mrs Gibson. They contend that the truster's provision for his daughter Mrs Millar and her children is a single and indivisible gift, conditional on Mrs Millar's surrender of her legitim; and they say that as Mrs Millar has claimed her legitim, she has incurred a forfeiture, not only of her life interest in the provision, but also of her children's right of fee or reversionary interest in the fund. They endeavour to distinguish the case from Fisher v. Dixon, 6 W. and S. 431, on the ground that under the terms of Mr Snody's trust-deed his daughter's children are not instituted as independent legatees, but take only a derivative interest through their mother, conditional on her acceptance of the provision.
Now, the true ground of decision in Fisher v. Dixon, as explained by the present Lord President in a case cited ( Jack's Trustees, 6 R. 543), is that in a family provision the children have a separate and independent interest, which is not affected by the acts of the parent derogating from the authority of the will. It is not necessary that the gift to the children should be separate in form; if it is substantially a separate and independent interest, the law will protect it, and will not involve the children in the consequences of the parent's election to claim legitim. Now, on referring to the provision itself, I find that there is a gift to Mrs Millar's children after the death of their mother, separate in form and substance from the gift to the mother for life. They are not to take in substitution to their mother (which would raise a very different question), but they are to take as institutes their right vesting at the truster's death, subject to the burden of the mother's liferent interest.
An argument was also founded on a clause in which the truster declares that the provisions in favour of his ‘daughters and grandchildren’ shall be accepted by them in satisfaction of legitim or other claims. It is not very clear what was the truster's motive or reason for the reference to grandchildren contained in this clause; but I cannot accept the suggestion that he meant to impose on his grandchildren an obligation to satisfy legitim which it clearly was not in their power to fulfil. If the expressions in this clause mean anything more than a descriptive reference to the foregoing provision, I think the clause must be construed distributively—a mode of construction which is at any rate rendered necessary by the circumstance that the provisions are declared to be in satisfaction of marriage-contract obligations as well as of legitim. The sentence, when thus explained, means that the provisions in favour of the truster's daughters are to satisfy any claim they may have upon him, either in respect of his accession to their marriage-contracts, or in respect of their right to legitim, as the case may be, and that the provisions to his grandchildren are to be accepted in satisfaction of anything he may have promised on the occasion of their mother's marriage. This is, I think, the true reading of the clause, and it displaces the argument founded on it with respect to legitim. I have only further to add, that I do not find in Mr Snody's deed anything which can be considered to import a forfeiture of the children's rights in case of the parent's claiming legitim. If such a case had arisen, I should not consider that the doctrine laid down in Fisher v. Dixon was necessarily conclusive on the question.
The other questions argued in this process are those raised by Dr Wallace in his condescendence, namely—[ His Lordship here narrated certain other claims]. On these questions I propose to allow a proof before answer.”
The claimants Mrs Gibson's trustees reclaimed, and argued—This was not a case of ordinary
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fee and liferent, for the provision in favour of Mrs Millar and her family was a single and indivisible gift conditional on Mrs Millar's surrender of legitim. The question was one purely of intention, to be gathered from a sound construction of the trust-deed; various considerations favoured equality among the three families—the general scheme of the deed, the treatment of the advances made to Mrs Millar and her family as part payment of her share, the description of the portion which the children were to get; this was not to be the fee of the estate. In the construction of this deed, its tripartite division was of the greatest importance, to be kept in mind as demonstrating the intention of the truster, which was clearly equality among the sets of beneficiaries. No doubt legitim is a debt payable prima facie out of the whole executry, but in the present case it was clearly the intention of the truster, by separating his estate into three parts, to prevent any claim like the present from emerging—the provision to each set of beneficiaries was to be in full of all legal rights. Authorities— Hutchison v. Anderson's Trustees, Mar. 18, 1853, 15 D. 570, rev. 2 M'Q. 492; Macfarlane's Trustees v. Macfarlane, July 20, 1882, 19 Scot. Law Rep. 850.
Argued for claimants W. S. Millar and H. L. Millar—Legitim was a claim against the whole free executry. The legacies to the children of Mrs Millar vested at the death of the testator, and their interest in these legacies could not be prejudiced by their mother claiming her legal rights, for the provision was divisible, and the children's interest was clearly separable.
Authorities— Ewan v. Walt, July 10, 1828, 6 Sh. 1125; Collier v. Collier, July 6, 1833, 11 Sh. 912; Wilson v. Gibson, June 30, 1840, 2 D. 1236; Sinclair's Executor's v. Rorison, Dec. 11, 1852, 15 D. 212; Baird v. Harvey's Trustees, July 6, 1858, 20 D. 1220.
At advising—
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The Court pronounced this interlocutor:—
“The Lords having heard counsel on the reclaiming-note for Mrs Helen Snody and Gibson's trustees, against Lord M'Laren's interlocutor of 3d November 1882, Adhere to the interlocutor with this variation, that the second finding is qualified by adding thereto, after the words ‘mother's election,’ the words ‘except in so far as their share of the free residue may be required to contribute along with the other shares of the free residue to satisfy their mother's claim of legitim.’”
Counsel for Gibson's Trustees— Gloag— Darling. Agents— Scott Moncrieff & Trail, W.S.
Counsel for Claimants W. S. Millar & H. L. Millar— Pearson— Shaw. Agent— William Asher, S.S.C.