MacInnes v. MacInnes

MacInnes v. MacInnes

Section 146 of the Ontario Insurance Act must be read as permitting the insured to create limited interests among members of the preferred class (including life estates and remainders within that class); the will's alteration of the beneficiary designations is valid to that extent, but the attempted remainder to persons outside the preferred class is void and severable; separately, the Employee's Acceptance was testamentary in character and invalid for want of proper attestation, so the employee's share of the profit‑sharing fund forms part of the estate.

Citation
[1935] SCR 200
Parties
Appellant (plaintiff, Wife, Designated Beneficiary): Annie MacInnes; Respondent (mother): Margaret MacInnes; Respondent (sister / Alternate Remainderman): Mamie Campbell; Respondent Representative: Official Guardian (for infants and unborn issue of Mamie Campbell); Respondent (executor/trustee): Executor of the Estate of J.C. MacInnes; Deceased (testator / Insured): James Carmen MacInnes (deceased)
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
21 December 1934
Procedural Posture
Appeal / Decision on Appeal to the Supreme Court of Canada From Court of Appeal for Ontario; Motion for Opinion and Direction in Estate Administration Below
Outcome
Appeal dismissed.
Legal Topics
Designation of Beneficiary, Preferred Beneficiaries Under Insurance Act, Testamentary Character of Nomination Instruments, Employee Profit‑sharing Fund, Severability of Statutory Provisions
Source Language
English
Insurance Law Trusts and Estates Wills Designation of Beneficiary Preferred Beneficiaries Under Insurance Act Testamentary Character of Nomination Instruments Employee Profit‑sharing Fund Severability of Statutory Provisions

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 4 Authorities cited 8 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Annie MacInnes

Appellant (plaintiff, Wife, Designated Beneficiary)

Margaret MacInnes

Respondent (mother)

Mamie Campbell

Respondent (sister / Alternate Remainderman)

Official Guardian (for infants and unborn issue of Mamie Campbell)

Respondent Representative

Executor of the Estate of J.C. MacInnes

Respondent (executor/trustee)

James Carmen MacInnes (deceased)

Deceased (testator / Insured)

Procedural Posture

Appeal / Decision on Appeal to the Supreme Court of Canada From Court of Appeal for Ontario; Motion for Opinion and Direction in Estate Administration Below

Legal Issues

  1. 1 Whether a will can validly alter a preferred beneficiary designation under the Ontario Insurance Act and to what extent
  2. 2 Whether the gift over to a non‑preferred beneficiary (sister/issue) was competent
  3. 3 Whether the Employee's Acceptance nominating the wife was testamentary in character and hence invalid for want of required formalities

Ratio Decidendi

Section 146 of the Ontario Insurance Act must be read as permitting the insured to create limited interests among members of the preferred class (including life estates and remainders within that class); the will's alteration of the beneficiary designations is valid to that extent, but the attempted remainder to persons outside the preferred class is void and severable; separately, the Employee's Acceptance was testamentary in character and invalid for want of proper attestation, so the employee's share of the profit‑sharing fund forms part of the estate.

Court Disposition

Appeal dismissed.

Orders

  • Insurance proceeds to be paid to executor/trustee (Chartered Trust and Executor Company) and divided into two equal trust funds: one for the wife and one for the mother, each to receive net income with trustee discretion to encroach on corpus for support and maintenance
  • On the death of either wife or mother the balance of her share to be added to the survivor's share and held for the survivor in the same manner; if the mother predeceases the widow the whole balance belongs to the widow absolutely; if the mother survives the widow then on the mother's death the whole balance reverts...