1998, June 24 BCCA V02884/V02885
In 1979 the deceased completed a beneficiary designation in favour of her husband under a group like policy. The deceased was diagnosed with cancer. The deceased divorced the husband in 1981 based on adultery. The deceased and husband made a separation agreement, relinquishing any interest in each other’s property. The deceased thought steps had been taken to revoke the designation before she died in 1994. The deceased intended to leave everything to her sister, not her ex husband. The deceased was mistaken about the change not having been made.
Equity will impose a trust “whenever justice and good conscience require it”. The husband had surrendered all rights under the separation agreement to any property of the deceased, and therefore, a constructive trust arose.