Lim Lina v Estate of Quick Cheng Gee: Insurance Policy Proceeds & Statutory Trust
In Lim Lina v Estate of Quick Cheng Gee, the High Court of Singapore, on 19 December 2011, heard an application by Lim Lina against the Estate of Quick Cheng Gee, deceased, seeking a declaration that she was entitled to the proceeds of three insurance policies where she was named the sole beneficiary. The court, citing Section 73(1) of the Conveyancing and Law of Property Act, held that the insurance policies were expressed to be for the benefit of the plaintiff, and therefore the proceeds did not form part of the deceased's estate. The court allowed the application and ordered costs to be paid by the Estate.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Application allowed.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
The High Court ruled that insurance policy proceeds, with the wife named as beneficiary, are held in statutory trust and do not form part of the deceased's estate.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Lim Lina | Plaintiff | Individual | Application Allowed | Won | |
| Estate of Quick Cheng Gee, deceased | Defendant | Trust | Application Dismissed | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Lee Seiu Kin | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Kee Lay Lian | Rajah & Tann LLP |
| Vimaljit Kaur | Rajah & Tann LLP |
| Zaminder Singh Gill | Hillborne & Company |
4. Facts
- The plaintiff was married to the Deceased in November 1991.
- The Deceased died intestate on 30 March 2005.
- The plaintiff and Mdm Lu were appointed administratrices of the Estate.
- The issue concerns the proceeds of three insurance policies purchased by the Deceased, totaling $339,125.37.
- The plaintiff was named as the sole beneficiary in the insurance policies.
- The proceeds of the AIA Insurance Policies were paid into the DBS Estate Account.
- Mdm Lu refused to approve the release of the proceeds to the plaintiff.
5. Formal Citations
- Lim Lina v Estate of Quick Cheng Gee, deceased, Originating Summons No 388 of 2011, [2011] SGHC 267
6. Timeline
| Date | Event |
|---|---|
| Plaintiff married the Deceased | |
| Deceased died intestate | |
| Grant of letters of administration extracted | |
| Judgment issued |
7. Legal Issues
- Whether the proceeds of the AIA Insurance Policies form part of the Estate
- Outcome: The court held that the proceeds of the AIA Insurance Policies do not form part of the Estate.
- Category: Substantive
8. Remedies Sought
- Declaration that the plaintiff is entitled to the proceeds of the AIA Insurance Policies
- Order for the release of the proceeds to the plaintiff
9. Cause of Actions
- Claim for declaration of entitlement to insurance policy proceeds
10. Practice Areas
- Estate Planning
- Trusts
- Insurance Litigation
11. Industries
- Insurance
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| CH v CI | District Court | Yes | [2004] SGDC 131 | Singapore | Cited for the principle that it is not necessary to specifically invoke Section 73 in the life insurance policy documents in order for a Section 73 trust to be created. |
| Eng Li Cheng Dolly v Lim Yeo Hua | High Court | Yes | [1995] 2 SLR(R) 577 | Singapore | Cited for the principle that there is no fixed format of 'expression' required in order for s 73 of the CLPA to be brought into operation. |
| Re Yeo Hock Hoe’s Policy | Malaya Law Journal | Yes | (1938) MLJ 33 | Malaysia | Cited for the rationale that the legislature views with sympathy any effort by a man to provide for his wife and family after his death. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Conveyancing and Law of Property Act (Cap 61, 1994 Rev Ed) | Singapore |
| Intestate Succession Act (Cap 146, 1985 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Insurance policy proceeds
- Statutory trust
- Beneficiary
- Intestate
- Administratrices
- Section 73 of the Conveyancing and Law of Property Act
15.2 Keywords
- insurance policy
- statutory trust
- estate
- beneficiary
- Conveyancing and Law of Property Act
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Estate Administration | 90 |
| Trust Law | 75 |
| Inheritance | 70 |
| Wills and Probate | 60 |
| Insurance | 50 |
16. Subjects
- Trusts
- Insurance
- Estate Administration