Under the Uniform Life Insurance Acts of the Provinces of Canada
(except Quebec) the life assured under any policy issued in Canada
(except Quebec) can exercise all the rights and options in the
policy for their own benefit unless a beneficiary has been
appointed irrevocably. In this case IHTA84/S5 (2) applies and the
policy forms part of the life assured's estate because there is
normally no trust and thus no settlement.
However some policies do contain an express trust in favour
of the beneficiary (subject to defeasance if they die before the
life assured or if the life assured exercises the rights and
options for their own benefit). If a beneficiary has been nominated
the policy is settled property and S5 (2) does not apply.
