Gillon's Trustees v. Gillon [1903] ScotLR 40_461 (11 March 1903)

Gillon's Trustees v. Gillon [1903] ScotLR 40_461 (11 March 1903)

The provision in favour of Mrs Gillon was not a postnuptial provision but a recompense for advances made by her as a creditor. The trust-deed was primarily for the benefit of creditors, and the wife's rights under the trust were analogous to those of other creditors. Therefore, the trust-disposition was revocable with her consent, and the trustees were bound to denude upon being relieved of their obligations and reimbursed for payments made.

Citation
[1903] ScotLR 40_461
Parties
Pursuers (trustees): James Russell and J. G. B. Henderson (Trustees of Henry Gillon); Defender (truster): Henry Gillon; Defender (wife of Truster): Amy Anne Blanche Hemans or Gillon
Jurisdiction
Scotland
Judgment Date
11 March 1903
Procedural Posture
Civil (declarator) / Appeal (reclaiming Note) – Final Judgment With Amended Interlocutor
Outcome
Appeal allowed; interlocutor of Lord Ordinary recalled; trust-disposition revocable with wife's consent; trustees to denude upon being relieved and reimbursed.
Legal Topics
Revocability of Trusts, Postnuptial Provisions, Alimentary Liferent, Trustees' Obligations, Consent to Revocation
Trusts and Estates Family Law Contract Law Revocability of Trusts Postnuptial Provisions Alimentary Liferent Trustees' Obligations Consent to Revocation

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Parties

James Russell and J. G. B. Henderson (Trustees of Henry Gillon)

Pursuers (trustees)

Henry Gillon

Defender (truster)

Amy Anne Blanche Hemans or Gillon

Defender (wife of Truster)

Procedural Posture

Civil (declarator) / Appeal (reclaiming Note) – Final Judgment With Amended Interlocutor

Legal Issues

  1. 1 Whether a trust-disposition inter vivos, primarily for payment of debts but containing a provision for the truster's wife, is revocable by the truster with the wife's consent.
  2. 2 Whether the provision in favour of the wife is a postnuptial provision and, if so, whether it is irrevocable even with her consent.
  3. 3 Whether trustees are bound to denude themselves of the trust upon revocation with consent of all interested parties.

Ratio Decidendi

The provision in favour of Mrs Gillon was not a postnuptial provision but a recompense for advances made by her as a creditor. The trust-deed was primarily for the benefit of creditors, and the wife's rights under the trust were analogous to those of other creditors. Therefore, the trust-disposition was revocable with her consent, and the trustees were bound to denude upon being relieved of their obligations and reimbursed for payments made.

Court Disposition

Appeal allowed; interlocutor of Lord Ordinary recalled; trust-disposition revocable with wife's consent; trustees to denude upon being relieved and reimbursed.

Orders

  • Trust-disposition of 25th November 1897 is revocable with the consent of Mrs Amy Anne Blanche Hemans or Gillon.
  • Mrs Gillon has consented to the revocation.