Eng Li Cheng Dolly v Lim Yeo Hua

• Jurisdiction: Singapore
• Judgment Date: 30 June 1995
• Date: 30 June 1995
• Docket Number: Originating Summons No 1191 of
• Court: High Court (Singapore)

Eng Li Cheng Dolly

Plaintiff

and

Lim Yeo Hua

Defendant

[1995] SGHC 150

G P Selvam J

Originating Summons No 1191 of 1994

High Court

Probate and Administration–Distribution of assets–Residuary estate–Insurance policy in favour of deceased's former wife not specifically bequeathed–Whether insurance policy forming part of residuary estate–Probate and Administration–Distribution of assets–Specific bequest of all real property–Whether bequest subject to creation of trust–Trusts–Deceased's former wife named as beneficiary in insurance policy–Whether immediate trust created in favour of former wife–Section 73 Conveyancing and Law of Property Act (Cap 61, 1994 Rev Ed)

The deceased was the husband of the plaintiff and the brother of the defendant. He passed away testate after he and the plaintiff were divorced. His principal assets were three insurance policies and two immovable properties. The defendant was named the sole executor of the deceased's will. By his will, the deceased bequeathed 40% of his “real property” to the plaintiff, 30% to his trustee, 20% to his son and 10% to his fiancée. In respect of his personal property, the deceased bequeathed all of it that was not specifically disposed of to his trustees and fiancée in equal shares.

The plaintiff sought declarations that: (a) she was entitled to the proceeds of an insurance policy not specifically bequeathed in which she was named as beneficiary; and (b) she and her son were entitled to 40% and 20% respectively of a HDB flat. The plaintiff argued that the deceased's naming of her in the insurance policy created an immediate trust in her favour under s 73 of the Conveyancing and Law of Property Act (Cap 61, 1994 Rev Ed) (“the Act”). With respect to the HDB flat, the defendant alleged that it was intended to be the matrimonial home for the deceased and his fiancée, and that the deceased told him at the time of making the will that the flat was to be in the residue for the benefit of his fiancée and the plaintiff.

Held, allowing the application:

(1) The insurance policy did not form part of the residuary estate. An immediate trust was created in favour of the plaintiff, which was not defeated by her subsequent divorce, when she was named as the beneficiary of the insurance policy under s 73 of the Act. The policy was taken out during marriage with the undoubted object of creating a fund from which the plaintiff might benefit. It was irrelevant that the policy did not mention s 73 of the Act: at [12], [13] and [14].

(2) The HDB flat was real property and, accordingly, the plaintiff was entitled to 40% and the son to 20% of it. The deceased's fiancée was only entitled to the 10% provided for her in the will because no trust in the HDB flat was created in her favour and the flat was dealt with by the will in very clear words: at [17] and [19].

Cousins v Sun Life Assurance Society [1933] Ch 126 (refd)

Lort-Williams v Lort-Williams [1951] P 395 (refd)

Conveyancing and Law of Property Act (Cap 61, 1994 Rev Ed) s 73 (consd)

Cheong Gay Eng (Cheong & Koh) for the plaintiff

Lee Tau Chye (Lee Brothers) for the defendant.

Judgment reserved.

G P Selvam J

The application

1 This matter concerns the...