Low Gim Siah v Low Geok Khim: Presumption of Advancement in Joint Bank Accounts
The grandchildren of Low Kim Tah ("LKT") appealed against the decision that the money in six joint accounts held in the names of LKT and his youngest son, Low Geok Bian ("LGB"), vested beneficially in LGB upon LKT’s death. The Court of Appeal of Singapore, with Chan Sek Keong CJ delivering the judgment, allowed the appeal, holding that LGB held the money in the six joint accounts on a resulting trust for the Estate of LKT. The court found that LKT retained full control of the accounts during his lifetime, rebutting the presumption of advancement.
1. Case Overview
1.1 Court
Court of Appeal1.2 Outcome
Appeal Allowed
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Appeal regarding funds in joint accounts held by father and son. Court of Appeal held funds were held on resulting trust for the estate.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Low Gim Siah | Appellant | Individual | Appeal Allowed | Won | Michael Khoo, Ong Lee Woei, Jimmy Yap |
| Low Chay Lin | Appellant | Individual | Appeal Allowed | Won | Michael Khoo, Ong Lee Woei, Jimmy Yap |
| Low Gim Har | Appellant | Individual | Appeal Allowed | Won | Michael Khoo, Ong Lee Woei, Jimmy Yap |
| Low Gim Tin @ Low Gim Tin Renna | Appellant | Individual | Appeal Allowed | Won | Michael Khoo, Ong Lee Woei, Jimmy Yap |
| Low Gim Lay | Appellant | Individual | Appeal Allowed | Won | Michael Khoo, Ong Lee Woei, Jimmy Yap |
| Low Gim Hong Richard | Appellant | Individual | Appeal Allowed | Won | Michael Khoo, Ong Lee Woei, Jimmy Yap |
| Low Gim Tee | Appellant | Individual | Appeal Allowed | Won | Michael Khoo, Ong Lee Woei, Jimmy Yap |
| Low Gim Chiong | Appellant | Individual | Appeal Allowed | Won | Michael Khoo, Ong Lee Woei, Jimmy Yap |
| Low Gim Pheng | Appellant | Individual | Appeal Allowed | Won | Michael Khoo, Ong Lee Woei, Jimmy Yap |
| Frey-Low Daisy | Appellant | Individual | Appeal Allowed | Won | Michael Khoo, Ong Lee Woei, Jimmy Yap |
| Low Chay Ghee | Appellant | Individual | Appeal Allowed | Won | Michael Khoo, Ong Lee Woei, Jimmy Yap |
| Low Nancy | Appellant | Individual | Appeal Allowed | Won | Michael Khoo, Ong Lee Woei, Jimmy Yap |
| Low Lina | Appellant | Individual | Appeal Allowed | Won | Michael Khoo, Ong Lee Woei, Jimmy Yap |
| Low Chye Chim | Appellant | Individual | Appeal Allowed | Won | Michael Khoo, Ong Lee Woei, Jimmy Yap |
| Low Geok Khim | Respondent | Individual | Appeal Allowed | Won | Tan Kay Kheng, Sim Bock Eng, Joyce Lim |
| Low Geok Bian | Respondent | Individual | Appeal Dismissed | Lost | Manoj Sandrasegara, Tan Mei Yen, Benjamin Gaw, Tan Mingfen, Jeremy Leong |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Chan Sek Keong | Chief Justice | Yes |
| Lai Siu Chiu | Judge | No |
| Andrew Phang Boon Leong | Justice of the Court of Appeal | No |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Michael Khoo | Michael Khoo & Partners |
| Ong Lee Woei | Michael Khoo & Partners |
| Jimmy Yap | Jimmy Yap & Co |
| Tan Kay Kheng | Wong Partnership |
| Sim Bock Eng | Wong Partnership |
| Joyce Lim | Wong Partnership |
| Manoj Sandrasegara | Drew & Napier LLC |
| Tan Mei Yen | Drew & Napier LLC |
| Benjamin Gaw | Drew & Napier LLC |
| Tan Mingfen | Drew & Napier LLC |
| Jeremy Leong | Drew & Napier LLC |
4. Facts
- LKT opened six joint accounts with his son, LGB, with rights of survivorship.
- The money in the joint accounts came entirely from LKT.
- LKT stipulated that one signature alone would be sufficient to operate the accounts.
- LKT retained control of the accounts and declared the interest for income tax purposes.
- LGB did not contribute any money to the accounts or draw any money from them.
- LKT died intestate, leaving other assets apart from the money in the joint accounts.
- LKT did not inform LGB that his intention in opening the joint accounts was to give the money to him upon his death.
5. Formal Citations
- Low Gim Siah and Others v Low Geok Khim and Another, CA 40/2006, [2006] SGCA 45
6. Timeline
| Date | Event |
|---|---|
| Hup Choon Kim Kee Pte Ltd incorporated | |
| POSB Account No 042-07218-5 opened | |
| Shareholders of HCKK passed a special resolution to wind up the company voluntarily | |
| Distribution Agreement Deed signed by LKT and all his children | |
| Completion of sale of Ava/Balestier properties | |
| Proceeds from sale of Ava/Balestier properties distributed | |
| OCBC Fixed Deposit Account No 516-549706-501 opened | |
| OCBC Easisave Account No 516-054889-001 opened | |
| OCBC Easisave Account No 516-054889-002 opened | |
| OCBC Easisave Account No 516-054889-003 opened | |
| OCBC Easisave Account No 516-054889-004 opened | |
| Low Kim Tah died intestate | |
| Appellants joined as co-defendants to the action | |
| Judgment reserved | |
| Decision Date |
7. Legal Issues
- Presumption of Advancement
- Outcome: The court held that the presumption of advancement was rebutted on the facts, and the money in the joint accounts was held on resulting trust for the estate.
- Category: Substantive
- Sub-Issues:
- Application of presumption in father-son relationship
- Rebuttal of presumption based on evidence
- Resulting Trust
- Outcome: The court held that LGB held the money in the six joint accounts on a resulting trust for the Estate.
- Category: Substantive
- Sub-Issues:
- Beneficial ownership of joint bank accounts
- Retention of control over funds
8. Remedies Sought
- Declaration of beneficial ownership
- Order for transfer of funds to the Estate
9. Cause of Actions
- Determination of beneficial ownership of joint bank accounts
- Claim for resulting trust
10. Practice Areas
- Trust Law
- Estate Planning
- Probate Litigation
11. Industries
- Banking
- Finance
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Low Geok Khim v Low Geok Bian | Originating Summons No 826 of 2003 | Yes | [2006] 2 SLR 444 | Singapore | The trial judge's decision that the money in six joint accounts vested beneficially in LGB as the surviving joint account holder upon LKT’s death was appealed against. |
| Murless v Franklin | Unknown | Yes | (1818) 1 Swans 13 | England | Cited for the principle regarding implied trusts and exceptions for purchases in the name of a son, addressing the presumption of advancement. |
| Ang Toon Teck v Ang Poon Sin | High Court | Yes | [1998] SGHC 67 | Singapore | Cited regarding the applicability of the presumption of advancement between a father and a financially self-supporting son. |
| In re Pauling’s Settlement Trusts | Unknown | Yes | [1964] Ch 303 | England | Cited for the relationship between the presumption of advancement and the presumption of undue influence. |
| Bennet v Bennet | Unknown | Yes | (1879) 10 Ch D 474 | England | Cited to explain that a dependency relationship was the original basis of the presumption of advancement. |
| Hepworth v Hepworth | Unknown | Yes | (1870-71) LR 11 Eq 10 | England | Cited as a case where the presumption of advancement was held to apply even when the son was capable of maintaining himself. |
| Sidmouth v Sidmouth | Unknown | Yes | (1840) 2 Beav 447 | England | Cited as a case where the presumption of advancement applied when a father bought stock in the name of his adult son who was dependent on him for support. |
| Phng Siew Hoon v Phng Siew Lan | High Court | Yes | [1991] SGHC 129 | Singapore | Cited as a case where the judge did not apply the presumption on the basis of love and affection, but instead held that love and affection were part of the evidence of the father’s intention to make a gift to the daughter. |
| Pettitt v Pettitt | House of Lords | Yes | [1970] AC 777 | England | Cited as the case where the House of Lords showed their disdain for the presumption as an evidentiary technique to resolve disputes relating to title to property between husband and wife. |
| McGrath v Wallis | English Court of Appeal | Yes | [1995] 2 FLR 114 | England | Cited as a decision which reiterated the observations of the law lords in Pettitt v Pettitt, and applied those observations to a situation concerning a father and son. |
| Neo Tai Kim v Foo Stie Wah | Privy Council | Yes | [1985] 1 MLJ 397 | Singapore | Cited as a Privy Council decision on appeal from Singapore which followed the judicial trend in England. |
| Teo Siew Har v Lee Kuan Yew | Court of Appeal | Yes | [1999] 4 SLR 560 | Singapore | Cited as a decision of the Court of Appeal which followed the judicial trend in England. |
| Neo Tai Kim v Foo Stie Wah | Court of Appeal | Yes | [1980-1981] SLR 215 | Singapore | Cited to show that the Court of Appeal, apart from stating that it had considered Pettitt v Pettit, had also said nothing about this subject. |
| Russell v Russell | British Columbia Supreme Court | Yes | [1975] 4 WWR 517 | Canada | Cited as a case that the current judicial approach towards the presumption of advancement is to treat it as an evidential instrument of last resort where there is no direct evidence as to the intention of the parties rather than as an oft-applied rule of thumb. |
| Harrods Ltd v Tester | English Court of Appeal | Yes | [1937] 2 All ER 236 | England | Cited to show that the cases where the presumption of advancement was held to have lost its robustness or diminished in importance were cases concerning joint contributions by married couples in acquiring the matrimonial home or properties acquired using joint savings. |
| Saylor v Madsen Estate | Court of Appeal of Ontario | Yes | (2006) 261 DLR (4th) 597 | Canada | Cited as an instructive illustration of the application of the presumption of advancement to joint bank accounts. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Presumption of advancement
- Resulting trust
- Joint bank accounts
- Right of survivorship
- Intestacy
- Beneficial ownership
- Mental capacity
- Dependency relationship
- Moral obligation
- Equitable obligation
15.2 Keywords
- Presumption of advancement
- Resulting trust
- Joint bank accounts
- Singapore
- Court of Appeal
- Family Law
- Trusts
- Low Kim Tah
- Low Geok Bian
- Intestacy
16. Subjects
- Trusts
- Family Law
- Banking Law
- Estate Law
17. Areas of Law
- Family Law
- Trusts
- Equity