Deed of gift where the donor held the property on trust

In Leung Mee Kuen v Leung Siu Kuen Bessie ([2015] HKEC 1148) Property A was jointly owned by the plaintiff and her brother (‘LPH’). Property A was sold and some of the proceeds were used to acquire Property B. The title to Property B, however, was placed in the joint names of LPH and his mother. This was done to reassure the mother that she would always have a roof over her head. There was no intention to make a gift of part of the purchase price to the mother. Thus, the plaintiff and LPH were the beneficial owners. The mother executed a deed of gift of her share in Property B to the defendant (the plaintiff’s sister). This did not transfer any beneficial entitlement to the defendant as the mother had no such entitlement.

Michael Lower


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