Trust deed residence rights were includible in the deceased's taxable estate because he held them as trustee.

A right of residence under a trust deed can form part of a deceased trustee's taxable estate where the deed confers that right on trustees generally. Clause 10 gave the trustees a residence right, and the deceased, being one of the trustees, held that right notwithstanding that he also acted as chairman. His chairman status did not exclude or diminish the rights attached to his trustee position, and the failure to separately mention the chairman was immaterial because that office was held only by virtue of trusteeship. On that construction, the deceased's share in the trust properties was includible in his taxable estate.

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Issues: Whether the trust properties were legally includible in the taxable estate of the deceased on the footing that, as trustee and chairman under the trust deed, he had a right of residence in those properties.

Analysis: Clause 10 of the trust deed conferred a right of residence on the trustees. The deceased was himself one of the trustees, and his position as chairman did not detract from or exclude the rights he possessed as trustee. The omission to separately mention the chairman was immaterial because the deceased held the office of chairman only by virtue of being a trustee. On that construction, he had a right to reside in the trust properties, and that right was capable of being brought into account in his estate.

Conclusion: The trust properties to the extent of the deceased's share were legally includible in his taxable estate, and the question was answered in the affirmative, against the assessee and in favour of the Revenue.

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