Settled property under a will can escape double estate duty where tax was paid on the first death and no power of disposition existed.

Property passing under a will can qualify as "settled property" under the Estate Duty Act because a settlement includes any disposition by which property is settled, including one effected through a will on death. Where estate duty has already been paid on the first death and the surviving spouse had no power of disposition over the property, section 29 prevents the same property from being included again in the survivor's estate. On that reasoning, the property left by the husband under the will was treated as settled property and was not liable to estate duty in the wife's estate.

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Issues: Whether property passing under a will constitutes "settled property" within the meaning of the Estate Duty Act and, if so, whether estate duty paid on the first death prevents inclusion of the same property in the estate of the surviving spouse under section 29.

Analysis: The definition of "settled property" in section 2(19) is wide enough to include property limited or held in trust by way of succession, and the concept of "settlement" includes any disposition by which property is settled. A settlement is not confined to bilateral arrangements; it may be effected through a will, though it operates on the testator's death. Section 29 applies where the property has been settled, estate duty has already been paid on the death of the deceased spouse, and the surviving spouse had no power of disposition at death.

Conclusion: The property left by the husband under the will was settled property, estate duty had already been paid on the first death, and the deceased wife had no power of disposition. The property was therefore not liable to estate duty in her estate.

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