Tan Chwee Lian v Ng Peh Wah: Resulting Trust, Joint Accounts & Severance
In Tan Chwee Lian v Ng Peh Wah, the General Division of the High Court of Singapore heard an application by Tan Chwee Lian (the Mother) against her daughter, Ng Peh Wah (the Daughter), regarding funds held in joint bank accounts. The Mother sought a declaration that the Daughter held the monies on resulting or constructive trust for her, severance of the joint accounts, and return of the funds. The court found in favor of the Mother, declaring a resulting trust, severing the joint tenancy, and ordering the Daughter to return the funds. The judgment was delivered on 10 May 2023.
1. Case Overview
1.1 Court
General Division of the High Court1.2 Outcome
Judgment for Claimant
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Mother sought return of money in joint accounts with daughter. Court declared daughter held money on resulting trust for mother, severing joint tenancy.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Tan Chwee Lian | Claimant | Individual | Judgment for Claimant | Won | |
| Ng Peh Wah | Defendant | Individual | Claim Dismissed | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Valerie Thean | Judge | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Lei Chee Kong Thomas | Lawrence Chua Practice LLC |
| Yap Bock Heng Christopher | Alpha Law LLC |
4. Facts
- The Mother opened joint accounts with her Daughter on 14 December 2022 under a "both to sign" arrangement.
- The Mother, 92 and not literate in English, stated she did not fully understand the "both to sign" arrangement.
- The Mother preferred an "either to sign" arrangement, where she could withdraw the money whenever she wished.
- The Mother expressed surprise that the money in the joint accounts would devolve to her Daughter on her demise.
- The Mother requested the Daughter to change the arrangement or withdraw the money, but the Daughter did not do so.
- The source of the money in the joint accounts was the Mother.
- The Mother's reason for opening the accounts was to separate her money for medical use and share investments.
5. Formal Citations
- Tan Chwee Lian v Ng Peh Wah, Originating Application No 25 of 2023 and Summons No 617 of 2023, [2023] SGHC 121
6. Timeline
| Date | Event |
|---|---|
| Joint accounts opened | |
| Affidavit of Tan Chwee Lian filed | |
| Law Society of Singapore’s Practice Direction 7.4.3 issued | |
| Affidavit of Ng Peh Wah filed | |
| Affidavit of Tan Chwee Lian filed in reply | |
| Affidavit of Ng Tze Chong filed | |
| Claimant’s Skeletal Arguments dated | |
| Defendant’s Written Submissions dated | |
| HC/SUM 617/2023 dismissed and amended reliefs granted under the OA | |
| Notes of Argument | |
| Judgment delivered |
7. Legal Issues
- Resulting Trust
- Outcome: The court declared that the Daughter held the money in the bank accounts on resulting trust for the Mother.
- Category: Substantive
- Related Cases:
- [2008] 2 SLR(R) 108
- [2020] SGHC 147
- [2019] 5 SLR 593
- [2014] 3 SLR 1048
- [2023] SGHC 108
- Constructive Trust
- Outcome: The court rejected the Daughter's argument that a constructive trust had arisen in her favor.
- Category: Substantive
- Presumption of Advancement
- Outcome: The court did not address the Daughter's arguments on the presumption of advancement, finding sufficient evidence to establish the Mother's intention.
- Category: Substantive
- Authority of Counsel
- Outcome: The court found that the Daughter's contention that the Mother's counsel had no authority lacked premise and dismissed the summons for cross-examination.
- Category: Procedural
- Related Cases:
- [2021] 2 SLR 377
8. Remedies Sought
- Declaration of Trust
- Severance of Joint Tenancy
- Return of Monies
- Interests
9. Cause of Actions
- Resulting Trust
- Constructive Trust
10. Practice Areas
- Litigation
- Trust Law
11. Industries
- Banking
- Finance
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Lau Siew Kim v Yeo Guan Chye Terence and another | High Court | Yes | [2008] 2 SLR(R) 108 | Singapore | Cited for the principles of resulting trust and the presumption that an owner of property does not intend to make a gift outside of certain relationships. |
| Bhavika Manohar Godhwani v Manohar Hargun Godhwani and others | High Court | Yes | [2020] SGHC 147 | Singapore | Cited for the principle that the presumption of resulting trust also applies to monies held in a joint account to which several account holders had made unequal contributions. |
| Estate of Yang Chun (Mrs) née Sun Hui Min, deceased v Yang Chia-Yin | High Court | Yes | [2019] 5 SLR 593 | Singapore | Cited for the principle that the presumption of resulting trust also applies to monies held in a joint account to which several account holders had made unequal contributions. |
| Syed Suhail bin Syed Zin v Public Prosecutor | Court of Appeal | Yes | [2021] 2 SLR 377 | Singapore | Cited to emphasize that it is inappropriate for counsel to advance allegations against other counsel without any evidence or factual basis. |
| Chan Yuen Lan v See Fong Mun | High Court | Yes | [2014] 3 SLR 1048 | Singapore | Cited for the principle that a resulting trust arises in response to a transferor’s lack of intention to benefit the transferee by way of the transfer in question. |
| Sheares Betty Hang Kiu v Chow Kwok Chi and others | High Court | Yes | [2006] 2 SLR(R) 285 | Singapore | Cited for the principle that a will only takes effect on the death of the testator, and a testator may change her mind at any time before death. |
| Kua Swee Lin v Ho Kim Yan and another | High Court | Yes | [2023] SGHC 108 | Singapore | Cited for the principle that the presumption of resulting trust, as well as the presumption of advancement, are not applicable where there is direct evidence revealing the intention of the transferor. |
13. Applicable Rules
| Rule Name |
|---|
| Law Society of Singapore’s Practice Direction 7.4.3 |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Resulting trust
- Constructive trust
- Joint account
- Joint tenancy
- Presumption of advancement
- Beneficial entitlement
- Originating application
- Voluntariness
- Right of survivorship
- Two-signature arrangement
15.2 Keywords
- trust
- resulting trust
- joint account
- Singapore
- high court
- civil
- mother
- daughter
- severance
- presumption of advancement
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Resulting Trust | 90 |
| Trust Law | 85 |
| Constructive Trust | 80 |
| Civil Procedure | 70 |
16. Subjects
- Trust Law
- Banking Law
- Civil Procedure