Estate Duty on settled property turns on the deceased's beneficial interest, not the entire trust property.

A settlement deed that vested interests in the sons while postponing possession did not bring the entire settled properties into the deceased's estate for estate duty. Section 22 of the Estate Duty Act protects only property held by the deceased as trustee for another and does not exclude the trustee's own beneficial interest. Under sections 5 and 7(1), only the beneficial interest that ceased on death was chargeable, because the whole property did not pass on death merely due to the deceased's trusteeship.

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Issues: Whether the entire value of the properties settled under the deed of settlement dated 6 October 1941 was liable to be included in the estate of the deceased and brought to charge under the Estate Duty Act, or whether only the beneficial interest retained by the deceased was chargeable.

Analysis: The settlement deed created vested interests in favour of the sons, while postponing possession and enjoyment. The deceased was a trustee for the beneficiaries, but he was also entitled during his lifetime to a defined beneficial interest under the settlement. Section 22 of the Estate Duty Act protects property held by the deceased as trustee for another, but it does not extend to the trustee's own beneficial interest. The charging provisions under section 5, read with section 7(1), apply only to property or interest that passes on death, and the only interest that so passed here was the deceased's beneficial interest which ceased on his death. The whole settled property did not pass on death merely because the deceased was a trustee.

Conclusion: The entire value of the settled properties was not liable to be included in the estate of the deceased. Only the beneficial interest of the deceased that ceased on his death was chargeable, and the reference was answered in the negative and in favour of the accountable person.

Ratio Decidendi: Section 22 of the Estate Duty Act, 1953 exempts only the trustee's legal holding for another person and does not exclude the trustee's own beneficial interest from charge; under sections 5 and 7(1), only the beneficial interest that ceases on death is assessable.

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