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Digest of the Week | Lapsed Gifts

Lapsed Gifts

McGregor et al. v. Krall | 2018 MBQB 7 | Manitoba Court of Queen's Bench

Gifts -- Completion of incomplete gift -- General principles

Lapsed gifts -- Testator left jewelry to her daughter and residue of estate to three children in equal shares -- Applicants were testator’s grandchildren and their father was testator’s son who predeceased her -- Applicants submitted gift to their father was to be paid to them, while respondent daughter asserted it reverted to estate -- Grandchildren brought application for advice and directions on disposition of estate -- Application granted -- S. 25.2 of The Wills Act provided that, absent contrary intention, gift to testator’s predeceased child did not lapse, but passed to child’s beneficiaries -- Manitoba courts had interpreted s. 25.2 as applying both to specific and residuary bequests -- This was also observation of Manitoba Law Reform Commission and was consistent with approach of other Canadian jurisdictions -- One-third share of residue that should have gone to testator’s son was to be distributed amongst applicants, his surviving children, in equal shares.
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