Lai Hoon Woon v Lai Foong Sin: Testamentary Capacity, Constructive Trusts, Resulting Trusts
In Lai Hoon Woon (executor and trustee of the estate of Lai Thai Lok, deceased) v Lai Foong Sin and Low Kim Thai @ Liew Kim Eng, the High Court of Singapore heard a case involving a challenge to the validity of a will and disputes over the ownership of Housing Development Board (HDB) shop units and businesses. The plaintiff, Lai Hoon Woon, sued as the executor of the estate of Lai Thai Lok (the Deceased) against the defendants, Lai Foong Sin and Low Kim Thai @ Liew Kim Eng. The court, presided over by Kannan Ramesh JC, dismissed all of the defendants' counterclaims and ruled in favor of the plaintiff on claims related to the Boon Lay Property and an outstanding loan. The court found the will to be valid and the Deceased to have had testamentary capacity.
1. Case Overview
1.1 Court
High Court of the Republic of Singapore1.2 Outcome
All of the first defendant's and second defendant's counterclaims are dismissed. Judgment for the plaintiff.
1.3 Case Type
Civil
1.4 Judgment Type
Judgment
1.5 Jurisdiction
Singapore
1.6 Description
Singapore High Court case regarding a will challenge, constructive trusts, and resulting trusts. Judgment delivered by Kannan Ramesh JC.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Lai Hoon Woon | Plaintiff | Individual | Judgment for Plaintiff | Won | |
| Lai Foong Sin | Defendant | Individual | Counterclaim Dismissed | Lost | |
| Low Kim Thai @ Liew Kim Eng | Defendant | Individual | Counterclaim Dismissed | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Kannan Ramesh | Judicial Commissioner | Yes |
4. Counsels
4. Facts
- Lai Thai Lok died of lung cancer on 25 June 2003, leaving behind his wife, Liew Kim Eng, and seven children.
- Five days before his death, Lai Thai Lok executed a will drafted by Ms. Anne Choo, distributing his assets to his beneficiaries.
- The will was challenged by those who were least provided for, alleging suspicious circumstances, lack of testamentary capacity, and undue influence.
- Liew Kim Eng alleged that Lai Thai Lok dishonestly transferred $404,225.19 from joint bank accounts to his sole accounts before his death.
- The ownership of two HDB shop units and the businesses operated on the premises was disputed.
- The Boon Lay Property was purchased from the HDB in the joint names of the Deceased and the 1st Defendant only as tenants-in-common, with their respective shares being 51% and 49%.
- The Deceased withdrew $404,225.19 from three joint accounts with Mdm Liew and deposited the same into newly opened accounts in his sole name.
5. Formal Citations
- Lai Hoon Woon (executor and trustee of the estate of Lai Thai Lok, deceased) v Lai Foong Sin and another, Suit No 392 of 2012/L, [2016] SGHC 113
6. Timeline
| Date | Event |
|---|---|
| Lai Thai Lok and Liew Kim Eng married. | |
| The family settled in 15th Milestone, Jurong. | |
| Yong Seng Huat business started. | |
| A small farm was started at the back of the family’s residence. | |
| Resettlement scheme implemented in Jurong, resulting in the closure of Yong Seng Huat. | |
| Lai Thai Lok started Yong Hup Seng Metal Works. | |
| The family relocated to a HDB rental unit in Toa Payoh. | |
| Lai Thai Lok started Thai Lok Engineering. | |
| Lai Foong Sin joined Yong Hup Seng. | |
| The family moved from Toa Payoh to a flat in Ang Mo Kio. | |
| Lokyang Department Store registered by Lai Thai Lok as a sole proprietorship. | |
| Jurong Town Corporation offered Lai Thai Lok the Boon Lay Property on a month-to-month tenancy. | |
| HDB offered Lai Thai Lok the Bedok Property on a month-to-month lease. | |
| Loyang Department Store registered by Lai Thai Lok. | |
| Lai Thai Lok was offered a shop unit at Block 5 Unit 395K Yew Tee Industrial Estate as a replacement for Yong Hup Seng. | |
| Lai Foong Sin and Lai Khian Hin were admitted as partners of the Boon Lay Shop. | |
| The Yew Tee Unit was sold by Lai Thai Lok and Lai Foong Chong. | |
| HDB offered the Bedok Property to Lai Thai Lok for purchase. | |
| Lai Thai Lok assigned his interest in the Bedok Property to Lim Chi Beng for $750,000. | |
| HDB approved the sale of the Boon Lay Property. | |
| The leasehold interest in the Boon Lay Property was purchased by Lai Thai Lok and Lai Foong Sin as tenants-in-common. | |
| Lai Thai Lok purchased a parcel of land in the People’s Republic of China from Yong Ding County Xinyi Development and Construction Ltd. | |
| Lai Foong Sin bought a place of residence at Corporation Drive. | |
| Lai Foong Sin sold his HDB apartment in Tampines. | |
| Liew Kim Eng lodged a police report. | |
| Lai Thai Lok withdrew $284,000 from Liew Kim Eng’s Joint ICB Account No. 2. | |
| Lai Thai Lok withdrew $80,000 and accrued interest of $149.58 from Liew Kim Eng’s Joint ICB Account. | |
| Lai Thai Lok withdrew $40,000 and accrued interest of $75.61 from another UOB account in joint names with Liew Kim Eng. | |
| Lai Thai Lok became short of breath and was taken to Singapore General Hospital. | |
| Lai Thai Lok was discharged from Gleneagles. | |
| Lai Thai Lok was admitted to Singapore General Hospital. | |
| Lai Thai Lok was discharged from Singapore General Hospital with home oxygen. | |
| Lai Thai Lok visited Citilegal LLC. | |
| Lai Thai Lok and Lai Hoon Woon opened two joint accounts at OCBC Bank’s Causeway Point branch. | |
| Lai Thai Lok and Lai Hoon Woon went to DBS Bank’s Woodlands Civic Centre Branch. | |
| Lai Thai Lok met Ms Choo again at Citilegal’s office. | |
| Lai Thai Lok visited Ms Choo for the third and last time. | |
| Lai Thai Lok returned to Singapore General Hospital for a medical review. | |
| Lai Thai Lok fainted at the Marsiling Flat and died at NUH. | |
| Lai Foong Sin unilaterally updated the ACRA records for the Boon Lay Shop. | |
| Lai Hoon Woon and Lai Poh Lin opened a fixed deposit account at OCBC Bank’s Causeway Point branch in their joint names. | |
| The Grant was issued. | |
| Liew Kim Eng lodged a police report. | |
| Liew Kim Eng and Lai Foong Sin visited Citilegal’s offices to request a copy of the Will. | |
| Grant of Probate of the Will obtained. | |
| Lai Foong Sin redeemed the loan on the Boon Lay Property from UOB and retrieved the title deeds. | |
| Liew Kim Eng was represented by Messrs Jeanny Ng. | |
| Liew Kim Eng made a will dated 31 December 2007. | |
| Messrs Ho Wong Practice Law LLC took over representing Liew Kim Eng. | |
| Lai Hoon Woon commenced this action against Lai Foong Sin. | |
| Liew Kim Thai was added as a co-defendant to the action. | |
| Lai Thai Lok succumbed to lung cancer. | |
| Judgment reserved. | |
| Judgment delivered. |
7. Legal Issues
- Testamentary Capacity
- Outcome: The court found that the Deceased had testamentary capacity when he executed the Will.
- Category: Substantive
- Resulting Trust
- Outcome: The court found that the Boon Lay Property and Shop, and the Bedok Property and Shop were not held by the Deceased on resulting trust for Mdm Liew.
- Category: Substantive
- Constructive Trust
- Outcome: The court found that the Boon Lay Property and Shop, and the Bedok Property and Shop were not held by the Deceased on constructive trust for Mdm Liew.
- Category: Substantive
- Proprietary Estoppel
- Outcome: The court found that there was no inchoate interest in equity arising out of a proprietary estoppel as regards the Boon Lay Property and Shop, and the Bedok Property and Shop.
- Category: Substantive
- Undue Influence
- Outcome: The court found that the preparation and execution of the Will was not procured by undue influence exercised by the Plaintiff over the Deceased.
- Category: Substantive
- Limitation
- Outcome: The court found that the claim for an account of a share of the profit attributable to use of the Deceased’s share of the partnership property is time-barred.
- Category: Procedural
8. Remedies Sought
- Registration as tenant-in-common of a 51% share in the Boon Lay Property
- Account of profits of the Boon Lay Shop
- Account of outstanding rent due from the Boon Lay Shop
- Judgment for $42,403, being the balance of the Loan
- Declaration that the 1st Defendant is the sole beneficial owner of the Boon Lay Property and Shop
- Declaration that the Will is void
9. Cause of Actions
- Breach of Contract
- Account
- Declaration
10. Practice Areas
- Trusts
- Constructive Trusts
- Resulting Trusts
- Estate Planning
- Probate Litigation
11. Industries
- No industries specified
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Lau Siew Kim v Yeo Guan Chye Terence | Court of Appeal | Yes | [2008] 2 SLR(R) 108 | Singapore | Cited for the building blocks of a resulting trust and the presumption of advancement. |
| Chan Yuen Lan v See Fong Mun | Court of Appeal | Yes | [2014] 3 SLR 1048 | Singapore | Cited for the principles of resulting trusts, common intention constructive trusts, and the sequential analysis for ascertaining beneficial interest in property. |
| Stack v Dowden | House of Lords | Yes | [2007] 2 AC 432 | England and Wales | Cited regarding the approach to common intention constructive trusts, referencing Lord Neuberger's dissenting judgment. |
| Buthmanaban s/o Vaithilingam v Krishnavanny d/o Vaithilingam (administratrix of the estate of Ponnusamy Sivapakiam, deceased) and another | High Court | Yes | [2015] SGHC 35 | Singapore | Cited for the functions of evidence of common intention in rebutting the presumption of a gift and setting the division of beneficial interest. |
| Hong Leong Singapore Finance Ltd v United Overseas Bank Ltd | High Court | Yes | [2007] 1 SLR(R) 292 | Singapore | Cited as the leading judgment on proprietary estoppel, outlining the elements of representation, reliance, and detriment. |
| Low Heng Leong Andy v Low Kian Beng Lawrence (administrator of the state of Tan Ah Kng, deceased) | High Court | Yes | [2013] 3 SLR 710 | Singapore | Cited for the principal difference between a proprietary estoppel and a constructive trust. |
| Lloyds Bank plc v Rosset | House of Lords | Yes | [1991] 1 AC 107 | England and Wales | Cited for the requirements to establish a common intention to share property beneficially and the conduct required to give rise to a constructive trust. |
| Chee Mu Lin Muriel v Chee Ka Lin Caroline (Chee Ping Chian Alexander and another, interveners) | Court of Appeal | Yes | [2010] 4 SLR 373 | Singapore | Cited as the leading decision on testamentary capacity, approving the requirements set out in George Abraham Vadakathu v Jacob George. |
| George Abraham Vadakathu v Jacob George | High Court | Yes | [2009] 3 SLR(R) 613 | Singapore | Cited for the requirements of testamentary capacity. |
| Lian Kok Hong v Lian Bee Leng | Court of Appeal | Yes | [2016] SGCA 24 | Singapore | Cited for the principle that only circumstances pertinent to the preparation and execution of the will may be taken into account when determining knowledge and approval. |
| Ip Wai Hung v Yip Man Chiu | Court of First Instance | Yes | [2007] HKCU 2108 | Hong Kong | Cited as an example of a case where evidence that the will was read and explained to the testatrix with the requisite mental capacity gave rise to the “natural and proper inference” that the testatrix understood and approved of the contents of the will before she signed it. |
| PS Nagarajan Robert Hotz | Unknown | Yes | [1954] AIR 278 | India | Cited regarding the applicability of limitation to a claim under s 42(1) of the Partnership Act. |
| Brownlow William Knox v Frederick Gye | House of Lords | Yes | (1871) LR 5 HL 656 | England and Wales | Cited regarding the applicability of the Statute of Limitations to a suit brought by the executor of a deceased partner against the surviving partner demanding an account of the partnership concerns. |
| Betjemann v Betjemann | Unknown | Yes | [1895] 2 Ch 474 | Unknown | Cited regarding a claim for an account of partnership dealings from the time of a partner’s death. |
| Chiam Heng Hsien (on his own behalf and as partner of Mitre Hotel Proprietors) v Chiam Heng Chow (executor of the estate of Chiam Toh Say, deceased) and others | Court of Appeal | Yes | [2015] 4 SLR 180 | Singapore | Cited for the consequences under the Partnership Act as a result of the death or retirement of a partner. |
| Lian Kok Hong v Lian Bee Leng | High Court | Yes | [2015] SGHC 205 | Singapore | Cited regarding a case where the testator had one functioning lung and was on medication for a heart condition. |
| Rajaratnam Kumar (alias Rajaratnam Vairamuthu) v Estate of Rajaratnam Saravana Muthu (decased) and another | Court of Appeal | Yes | [2010] 4 SLR 93 | Singapore | Cited regarding the requirements to prove undue influence. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Limitation Act (Cap 163, 1996 Rev Ed) | Singapore |
| Partnership Act (Cap 391, 1994 Rev Ed) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Testamentary capacity
- Constructive trust
- Resulting trust
- Undue influence
- Boon Lay Property
- Boon Lay Shop
- Bedok Property
- Bedok Shop
- Assignment Proceeds
- Tenant-in-common
- Executor
- Trustee
15.2 Keywords
- Trusts
- Wills
- Testamentary capacity
- Constructive trusts
- Resulting trusts
- Singapore
- High Court
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Trust Law | 85 |
| Resulting Trusts | 80 |
| Constructive trusts | 80 |
| Succession Law | 70 |
| Wills and Probate | 70 |
| Testamentary Capacity | 70 |
| Property Law | 60 |
| Contract Law | 30 |
| Civil Procedure | 20 |
16. Subjects
- Trusts
- Constructive trusts
- Resulting trusts
- Succession
- Wills
- Testamentary capacity