Gift to trust and change of dominion exclude estate duty where donor fully parts with possession and enjoyment.

A settled amount credited in the name of a trust was held not to form part of the deceased's dutiable estate under section 10 of the Estate Duty Act because the donor had parted with possession and enjoyment of the property. The Tribunal applied the principle that, where the donee obtains immediate possession and enjoyment and there is a complete change of dominion over the gifted property, the amount is not deemed to pass on death. On those facts, the trust account was treated on the same footing as cases where section 10 was inapplicable.

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Issues: Whether the sum credited in the name of the trust in the firm's books was includible in the deceased's estate under section 10 of the Estate Duty Act.

Analysis: The deceased had settled money on a trust, the amount remained deposited with the firm, and interest was credited for several years before crediting stopped. The decisive question was whether the donor had so parted with possession and enjoyment of the property as to exclude the operation of section 10. The Tribunal applied the principle that where, having regard to the nature of the property, the donee obtains immediate possession and enjoyment and there is a complete change of dominion, the gifted amount is not liable to be treated as property deemed to pass on death. On the facts, the trust account stood on the same footing as the cases where section 10 was held inapplicable.

Conclusion: The sum credited in the name of the trust was not includible in the dutiable estate of the deceased.

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