An estate trustee sought the court’s advice and direction regarding the distribution of a lapsed residuary gift where a named beneficiary predeceased the testator.
The issue was whether the 25% share should pass on intestacy to distant next of kin identified through genealogical research or instead be redistributed among the surviving named residuary beneficiaries.
Applying principles of will interpretation, including the “armchair rule” and the presumption favouring testacy over intestacy, the court examined the testator’s relationships and intentions at the time the will was made.
The evidence demonstrated that the testator had meaningful relationships only with the named beneficiaries and believed she had no living relatives.
The court found a contrary intention in the will and ordered the lapsed share to be distributed proportionately among the surviving residuary beneficiaries.
