“5 th December 1866.—Finds it proved, that the postnuptial contract of marriage libelled was executed on28th February 1852 , and was delivered to the trustees therein named, and the trust accepted by the said trustees in the month of March immediately following: Finds, that, by the said delivery to the said trustees, of whom Mrs. Elizabeth Riddell or Alexander, widow and executrix of the deceased John Henry Alexander, was one, the assignation of the legitim accruing to Mrs. Mary Anne Alexander or Finlay, as a child of the said deceased John Henry Alexander, contained in the said postnuptial contract was duly intimated to the said executrix: Finds it proved, that, at the date of execution, and also at the date of delivery of the said postnuptial contract, John Finlay, the husband of the said Mrs. Mary Anne Alexander or Finlay, and granter along with her of the assignation of the said legitim, was solvent; and that the assignation by Mr. Finlay of the said legitim was, in the circumstances of Mr. Finlay, no more than a reasonable provision for his wife and children: Finds and declares, that, by virtue of the said assignation, intimated as aforesaid, the trustees named in the said postnuptial contract, and acceptors and survivors of the same, were and are entitled to recover and receive the amount of legitim due to the said Mrs. Mary Anne Alexander or Finlay, from the estate of her father; and to hold and administer the same for the purposes of the trust declared in the said deed; and that the trustee and creditors in the sequestration of the said John Finlay have no right or interest in the said legitim, except to the effect and extent of claiming and receiving from the said trustees the amount of the liferent interest vested in the said John Finlay by the said postnuptial contract, and decerns; and appoints the cause to be enrolled, that, in so far as the conclusions of the summons are unexhausted by the foregoing findings, the case may be proceeded with, and brought to a close in accordance therewith.”
“26 th March 1867.—Refuse the desire of the reclaiming note for John Miller, and find him liable in expenses since the date of the Lord Ordinary's interlocutor reclaimed against: Refuse the desire of the reclaiming note for Thomas Learmonth and others also with this explanation, that all questions between the parties, hinc inde in reference to the interest or annual proceeds of the legitim funds are reserved entire: Find no expenses due in reference to the last mentioned Reclaiming Note: Remit to the Auditor to tax the expenses above found due and to report, and to the Lord Ordinary to decern therefor, and to proceed further in the cause as shall be just.”
“This postnuptial contract was recorded in the Books of Council and Session on7th December 1857 , as the extract produced shews. There is recorded as part of the deed a minute attached to it, running thus:—‘We, the trustees within named and designed, do hereby accept of the office of trustee.’ This minute is signed, amongst others, by Mrs. Elizabeth Alexander, who was executrix of John Henry Alexander, and as such was debtor in the legitim. The Lord Ordinary cannot doubt, that this is a sufficient acknowledgment of intimation of the assignation to the executrix. The minute acknowledges intimation of the deed, and does something more. The minute is not dated, but the extract shews that it was attached to the deed and subscribed at a period anterior to the date of the extract. It was understood, that the pursuers did not desire a more definite date to be inquired into.”
“The question which then arises is, whether this assignation of the legitim, being itself a reasonable provision by a solvent man for his wife and children, was so completed as to be effectual in competition with the sequestration of Mr. Finlay's estates. It appears to the Lord Ordinary, that this question receives an easy answer in the affirmative; for by the intimation of the assignation in March 1852, the right to the legitim was from that moment made real in the person of the trustees, and could not be affected by the sequestration, which only issued in January 1860, nearly eight years afterwards. The trustees, therefore, were, and are, entitled to hold the right in opposition to the sequestration, for all the trust purposes legally constituted by the deed. One of these purposes is the payment of the interest of the legitim fund to Mr. Finlay during his lifetime; and there appears no room for doubt, that to this extent the creditors in the sequestration come in room of Mr. Finlay, and are entitled to draw the interest from the trustees during Mr. Finlay's life. Another is the payment of the interest to Mrs. Finlay, after the death of her husband, and this is a purpose for which it is thought very clear, that the trustees legally hold the right so completely vested. The last purpose of the trust is the payment of the fee to the children; and as to this, some discussion arose before the Lord Ordinary. There can be no doubt that the case of children differs from that of wife, and this under an antenuptial not less than a postnuptial contract. In general, they have no jus crediti , but merely spes successionis , (ineffectual against creditors), in regard to provisions, which are not payable, principal or interest, till after the father's death. But it is trite law, that an effectual jus crediti may be constituted in their favour in many ways, and amongst others, by the constitution of a trust vesting a security for the provision in the person of the trustees during the father's lifetime. This appears to the Lord Ordinary to be substantially the case in the present instance. The completion of a real right to the legitim fund in the person of the trustees, appears in principle not different from what the case would have been, had the security been a conveyance of a landed property completed by infeftment. In such a case the right of the children would, according to the authorities, be fully effectual in competition with the father's creditors— Herries, Farquhar, and Co. v. Brown , 16 S. 948.
“The Lord Ordinary can at present go no further than to fix the general principle as to the nature and effect of the right vested in the trustees under the postnuptial contract. How that right is to be practically wrought out in the circumstances appearing from the record, must be the subject of separate discussion.”