Retained benefit under a trust deed, including trustee remuneration, brought the settled property within estate duty provisions.

A retained benefit under a trust deed can attract section 10 of the Estate Duty Act, 1953 where the settlor keeps a legally enforceable possibility of advantage, including trustee remuneration, even if the benefit is contingent and not actually drawn. The trust deed expressly provided for trustee remuneration, so the trust property was treated as includible in the deceased's estate. Section 7 was held inapplicable because it was confined to personal-law incidents and did not displace the operation of section 10 on these facts. The reference was answered for the Revenue, and the settled property remained liable to estate duty.

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Issues: (i) Whether the trustees' right to remuneration under the trust deed constituted a benefit retained by the deceased so as to attract section 10 of the Estate Duty Act, 1953. (ii) Whether section 7 of the Estate Duty Act, 1953 had application to the trust fund on the facts of the case.

Issue (i): Whether the trustees' right to remuneration under the trust deed constituted a benefit retained by the deceased so as to attract section 10 of the Estate Duty Act, 1953.

Analysis: The trust deed expressly provided for remuneration to trustees, making the benefit a legally recognised and enforceable possibility under the deed. A trustee's remuneration, though contingent on a resolution, is not a mere outgoing but a benefit reserved under the instrument. Under the second limb of section 10, retention of any benefit by contract or otherwise is sufficient, and the benefit need not be actually realised for the provision to apply.

Conclusion: Section 10 applied and the trust fund was includible in the estate of the deceased.

Issue (ii): Whether section 7 of the Estate Duty Act, 1953 had application to the trust fund on the facts of the case.

Analysis: Section 7 was confined to incidents of personal law and related situations involving specific types of property or benefits governed by Hindu personal law. The trust arrangement in question did not fall within that framework, and the existence of a retained benefit under section 10 was not displaced by section 7.

Conclusion: Section 7 did not apply.

Final Conclusion: The reference was answered in favour of the Revenue, with the trust fund held liable to be included in the deceased's estate for estate duty purposes.

Ratio Decidendi: Where a settlor retains under the trust deed a potential benefit to himself, including a right to trustee remuneration, the benefit falls within the second limb of section 10 of the Estate Duty Act and the settled property is includible in the estate notwithstanding that the benefit is contingent or not actually drawn.

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