Royal Trust Co. v. Tucker

Royal Trust Co. v. Tucker

The deed of donation and trust in favour of unborn primary beneficiaries is valid because trustee acceptance and the established doctrine that the trustee holds ownership/seizin of the trust property during the trust remove the need for beneficiaries to exist at the time of creation; the secondary gift to the donor's sisters is also valid because it creates a suspensive right under an inter vivos trust (not a donatio mortis causa) and the donor irrevocably divested herself of the trust property.

Citation
[1982] 1 SCR 250
Parties
Appellant/trustee: Royal Trust Company; Respondent/donor: Dame Barbara Tucker; Mis En Cause (minor Daughter, Primary Beneficiary): Judith Mae Buller; Mis En Cause (minor Daughter, Primary Beneficiary): Catherine Martha Buller; Mis En Cause (minor Daughter, Primary Beneficiary): Patricia Doreen Buller; Mis En Cause (minor Daughter, Primary Beneficiary): Pamela Christine Buller; Mis En Cause (sister, Secondary Beneficiary): Diane Harding Tucker; Mis En Cause (sister, Secondary Beneficiary): Daphney Millicent Tucker; Mis En Cause (registrar): Registrar of the Registration Division of Montreal; Intervener/tutor Ad Litem: H. Clark Holden
Court
Supreme Court of Canada
Jurisdiction
Canada
Judgment Date
9 February 1982
Procedural Posture
Appeal Concerning Validity of Deed of Donation and Trust (trust Law) / Appeal to Supreme Court of Canada From Court of Appeal for Quebec; Judgment on Appeal Reinstating Superior Court Judgment
Outcome
Appeal allowed; judgment of the Court of Appeal for Quebec reversed; judgment of the Superior Court restored
Legal Topics
Validity of Inter Vivos Trust for Unborn Beneficiaries, Acceptance of Trust, Ownership of Trust Property During Trust, Gift Mortis Causa (gift in Contemplation of Death), Interpretation of Civil Code Arts. 981a Et Seq.
Source Language
English
Trusts Succession Civil Code Interpretation Validity of Inter Vivos Trust for Unborn Beneficiaries Acceptance of Trust Ownership of Trust Property During Trust Gift Mortis Causa (gift in Contemplation of Death) Interpretation of Civil Code Arts. 981a Et Seq.

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Parties

Royal Trust Company

Appellant/trustee

Dame Barbara Tucker

Respondent/donor

Judith Mae Buller

Mis En Cause (minor Daughter, Primary Beneficiary)

Catherine Martha Buller

Mis En Cause (minor Daughter, Primary Beneficiary)

Patricia Doreen Buller

Mis En Cause (minor Daughter, Primary Beneficiary)

Pamela Christine Buller

Mis En Cause (minor Daughter, Primary Beneficiary)

Diane Harding Tucker

Mis En Cause (sister, Secondary Beneficiary)

Daphney Millicent Tucker

Mis En Cause (sister, Secondary Beneficiary)

Registrar of the Registration Division of Montreal

Mis En Cause (registrar)

H. Clark Holden

Intervener/tutor Ad Litem

Procedural Posture

Appeal Concerning Validity of Deed of Donation and Trust (trust Law) / Appeal to Supreme Court of Canada From Court of Appeal for Quebec; Judgment on Appeal Reinstating Superior Court Judgment

Legal Issues

  1. 1 Whether an inter vivos deed of donation and trust made primarily for the benefit of unborn children is valid under Civil Code arts. 981a et seq.
  2. 2 Whether acceptance by the trustee alone suffices to make the inter vivos trust irrevocable or whether beneficiary acceptance is required
  3. 3 Whether the trustee becomes owner (seized) of the trust property for the duration of the trust so that beneficiaries need not exist on creation

Ratio Decidendi

The deed of donation and trust in favour of unborn primary beneficiaries is valid because trustee acceptance and the established doctrine that the trustee holds ownership/seizin of the trust property during the trust remove the need for beneficiaries to exist at the time of creation; the secondary gift to the donor's sisters is also valid because it creates a suspensive right under an inter vivos trust (not a donatio mortis causa) and the donor irrevocably divested herself of the trust property.

Court Disposition

Appeal allowed; judgment of the Court of Appeal for Quebec reversed; judgment of the Superior Court restored

Orders

  • Appeal allowed
  • Judgment of the Court of Appeal for Quebec reversed