British and Malayan Trustees v Chng Heng Tee: Interpretation of Will & Distribution of Trust Income

In British and Malayan Trustees Ltd and Another v Chng Heng Tee (alias Cheng Kim Tee) and Another, the High Court of Singapore, on 7 January 2008, addressed an application by the trustees of Lim Yew Teok's will regarding the distribution of 40 shares of income from residuary trust funds. The court considered whether these shares should fall into residue or devolve to other beneficiaries, specifically the Chngs, who are the half-blood paternal aunts of the deceased legatee, LCN. The court ruled that 25 shares should fall into residue, while the remaining 15 shares would devolve to the Chngs.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

The court determined that 25 shares of the trust income should fall into residue, while the remaining 15 shares would devolve to the Chngs.

1.3 Case Type

Probate

1.4 Judgment Type

Judgment

1.5 Jurisdiction

Singapore

1.6 Description

The High Court addressed the distribution of trust income shares under a will, deciding whether they should fall into residue or devolve to other beneficiaries.

1.7 Decision Date

6 January 2008

2. Parties and Outcomes

Party Name	Role	Type	Outcome	Outcome Type	Counsels
British and Malayan Trustees Ltd	Applicant	Corporation	Partial	Partial	Edwin Tong of Allen & Gledhill LLP Colin Chow of Allen & Gledhill LLP
Chng Heng Tee (alias Cheng Kim Tee)	Respondent	Individual	Partial	Partial	Kee Lay Lian of Rajah & Tann Melvin Lum of Rajah & Tann
Chng Kim Choo alias Chuan Heng Choo	Respondent	Individual	Partial	Partial	Kee Lay Lian of Rajah & Tann Melvin Lum of Rajah & Tann
Dr Irene Lim Kay Han	Applicant	Individual	Partial	Partial	Edwin Tong of Allen & Gledhill LLP Colin Chow of Allen & Gledhill LLP

3. Judges

Judge Name	Title	Delivered Judgment
Choo Han Teck	J	Yes

4. Counsels

Counsel Name	Organization
Edwin Tong	Allen & Gledhill LLP
Colin Chow	Allen & Gledhill LLP
Kee Lay Lian	Rajah & Tann
Melvin Lum	Rajah & Tann

4. Facts

The trustees sought direction on distributing 40 shares of income from a will's residuary trust funds.
Lim Chui Ngor (LCN) held 40 shares and passed away without lineal descendants, a spouse, or issue.
The Chngs, half-blood paternal aunts of LCN, claimed a portion of the 40 shares.
The Lims and Mr. Lim Hock Seng opposed the Chngs' claim, arguing all 40 shares should fall into residue.
The applicants preferred all 40 shares to fall into residue but suggested 15 shares might devolve otherwise.
The Chngs argued 25 shares should fall into residue, with 15 shares passing directly to them.
The 15 shares in question were passed to LCN from original residuary legatees.

5. Formal Citations

British and Malayan Trustees Ltd and Another v Chng Heng Tee (alias Cheng Kim Tee) and Another, OS 1329/2007, [2008] SGHC 2

6. Timeline

Date	Event
2006-06-29	Lim Chui Ngor passed away
2008-01-07	Judgment delivered

7. Legal Issues

Interpretation of Will Clause
- Outcome: The court interpreted the clause to mean that 15 shares should devolve to the next of kin, while the remaining 25 shares should fall into residue.
- Category: Substantive
- Sub-Issues:
  - Meaning of 'next of kin'
  - Meaning of 'stirps'
  - Distribution of residuary trust funds

8. Remedies Sought

Court Direction on Distribution of Trust Income

9. Cause of Actions

Application for Court Direction
Will Interpretation

10. Practice Areas

Trust Administration
Estate Planning
Probate Litigation

11. Industries

No industries specified

12. Cited Cases

Case Name	Court	Affirmed	Citation	Jurisdiction	Significance
British and Malayan Trustees Ltd v Chng Kiat Leng & Ors	High Court	Yes	[1966] 2 MLJ 260	Malaysia	Interpreted the relevant portion of clause 6 of the will, dividing the clause into sub-provisions and establishing how shares pass from an original residuary legatee.
British Malaya Trustee and Executor Co v Chng Phee Lam	High Court	Yes	[1948] MLJ 188	Malaysia	Defined 'stirps' in clause 6 as referring to descendents by blood.

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

Residuary Trust Funds
Residuary Legatees
Next of Kin
Stirps
Residue
Will Interpretation
Shares of Income
Complete Failure
First Transfer
Second Transfer

15.2 Keywords

trust
will
estate
residue
legatee
next of kin
stirps
trustees
distribution

17. Areas of Law

Area Name	Relevance Score
Wills and Probate	90
Trust Law	70
Succession Law	60
Wills	60
Express trusts	50
Intestacy	40
Personal representatives	30

16. Subjects

Trusts
Wills
Estate Administration