https://www.taxtmi.com/caselaws?id=27601 A settlement deed that postpones absolute benefits to daughters and grandchildren until after the settlor's and wife's lifetime is testamentary in character as to those future interests, because there is no present vesting or effective inter vivos transfer in favour of the intended donees. By contrast, the wife's present life interest is a valid gift and falls within the spouse exemption, so its value is not liable to gift-tax if within the statutory limit. The nomenclature of the instrument as a settlement deed is not determinative; its operative substance controls whether it amounts to a taxable gift or a disposition taking effect on death. en-us Fri, 29 Jul 1983 00:00:00 +0530 Sat, 13 Feb 2010 17:42:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=27601 A settlement deed that postpones absolute benefits to daughters and grandchildren until after the settlor's and wife's lifetime is testamentary in character as to those future interests, because there is no present vesting or effective inter vivos transfer in favour of the intended donees. By contrast, the wife's present life interest is a valid gift and falls within the spouse exemption, so its value is not liable to gift-tax if within the statutory limit. The nomenclature of the instrument as a settlement deed is not determinative; its operative substance controls whether it amounts to a taxable gift or a disposition taking effect on death. Case-Laws Income Tax Fri, 29 Jul 1983 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=27601