Post-death crash compensation not part of the deceased's estate and not subject to estate duty.

Compensation payable to the heirs of a deceased passenger after a plane crash was not property passing on death for estate duty purposes. Estate duty under the Estate Duty Act applies only to property that existed in the deceased's hands and passed by change in title, possession, beneficial enjoyment, or disposition. As the compensation arose only after death, was payable to dependents under the air carriage regime, and never formed part of the deceased's property during life, it did not pass from the deceased's estate and was not chargeable to estate duty.

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Issues: Whether compensation received by the heirs of a deceased passenger after a plane crash formed part of the deceased's estate and was liable to estate duty under the Estate Duty Act.

Analysis: Liability under section 5 depends on property that passes on the death of the deceased. The expressions in sections 2(15) and 2(16) show that the property must exist in the deceased's hands and must pass by a change in title, possession, or beneficial enjoyment. The charging provision and the illustrative rule in section 6 contemplate property in which the deceased had control, possession, an interest, or a power of disposition. The compensation in question arose only after death, was payable to the dependents under the air carriage regime, and never formed part of the deceased's property during life. It neither changed hands from the deceased nor represented any interest capable of passing from the deceased's estate.

Conclusion: The compensation was not property passing on death and was not chargeable to estate duty.

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