Re a Policy No 6402 of the Scottish Equitable Life Assurance Society: 1902

Mr Sanderson effected insurance on his own life ‘for the behoof’ of his sister-in-law, Miss Stiles. The policy moneys were payable to Miss Stiles or her personal representatives but the premiums were paid throughout by Mr Sanderson. The personal representatives of Mr Sanderson claimed the policy moneys from those of Miss Stiles to whom they had been paid.
Held: ‘Now, in the present case a policy was taken out by Mr. Sanderson a great many years ago, and the name of Miss Stiles appears in the policy as the person to whom the money is to be paid. The policy was never handed to her, and she is now dead, and the premiums were always paid, and were paid for many years after her death, by Sanderson. That, really, is a case of a man taking a policy out in the name of another, that other person being a sister of his wife, and, therefore not standing in any relation to him ‘that would meet the presumption,’ as Lord Eldon expressed it. It comes really to this: a purchase by one in the name of another with no other circumstances at all proved. Therefore, in my opinion, although the legal personal representative of the lady in this case would be the person entitled to receive the money at law and to give a receipt for it, in equity the money belongs to the legal personal representatives of Mr. Sanderson, who took out the policy.
Joyce J
[1902] 1 Ch 282
England and Wales

  • Cited – Dyer v Dyer 27-Nov-1988
    Where property is purchased by one person in the name of another there is a presumption that a resulting trust is created: ‘The clear result of all the cases, without a single exception is that the trust of a legal estate, whether freehold, copyhold . .
    (1788) 2 Cox 92, [1788] EWHC Exch J8, [1788] EWHC Exch J8, [1775-1802] All ER Rep 205, (1788) 2 RR 14, 30 ER 42

Cited by:

  • Cited – Foskett v McKeown and Others CA 27-Jun-1997
    Various people had paid money with the promise of acquiring an interest in land in Portugal. The scheme was fraudulent. The funds had been used to purchase a life/investment policy. The policy was held in trust for the fraudster’s mother but he had . .
    Times 27-Jun-97, [1997] EWCA Civ 1747, [1998] Ch 265

These lists may be incomplete.
Updated: 09 December 2020; Ref: scu.187414