What is the effect of a spouse's gift from one spouse to the other spouse of a jointly designated beneficiary of an exempt amount?

Alberta, Canada

The following excerpt is from Sutton v. Davidson, 1999 ABCA 280 (CanLII):

The appellant cited Harrower v. Harrower, supra, and Jackson v. Jackson, supra, to support his argument. The principle enunciated in these cases, according to the appellant, is that where exempt funds are co‑mingled with joint monies, it is implied that the spouse who caused the co‑mingling gifted one half of their exemption to the other spouse, and neither case cited makes reference to the ease of separating funds or the timing of withdrawals.

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