The appellant, a creditor of a bankrupt estate, sought to recover a debt from the proceeds of the deceased's RRSPs, which had been paid to the respondent as the designated beneficiary.
The Court of Appeal held that under section 53 of the Succession Law Reform Act, RRSP proceeds devolve directly to a designated beneficiary and do not form part of the deceased's estate.
Furthermore, the Court held that unpaid creditors of the estate have no claim against the RRSP proceeds in the hands of the beneficiary.
The appeal on the substantive issues was dismissed, but the appeal on costs was allowed, reducing the application judge's costs award.