Estate duty on jointly held shares: beneficial interest passed by survivorship, so section 13 applied on death.

Section 6 of the Estate Duty Act did not apply because the deceased could not transfer the jointly held shares without the consent of the other joint holder. Sections 9 and 10 were also inapplicable, as the arrangement was not treated as a gift. Section 13 applied where an absolute owner causes property to be placed in joint names so that beneficial interest passes by survivorship on death; on the facts, the deceased was the absolute owner, the shares stood in joint names with her sons, and the beneficial interest accrued to them on her death. The shares were therefore deemed to pass on death under section 13.

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Issues: Whether the 6,067 shares held jointly by the deceased and her sons were deemed to pass on her death under section 13 of the Estate Duty Act, 1953.

Analysis: Section 6 applies only where the deceased was competent to dispose of the property at the time of death. The company's letter showed that the shares could not be transferred without the consent of the joint holder, so section 6 did not apply. Sections 9 and 10 were also inapplicable because the transaction was not treated as a gift. Section 13, however, covered property in which a person absolutely entitled to the property causes it to be transferred to or vested in himself and another jointly so that beneficial interest passes by survivorship on death. The deceased was the absolute owner, caused the shares to stand in joint names, and on her death the beneficial interest accrued to the sons by survivorship. The statutory conditions under section 13 were therefore satisfied.

Conclusion: The shares were deemed to pass on the death of the deceased under section 13, and the question was answered in the affirmative against the accountable persons.

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