beneficial ownership

The testator left the residue of his estate to an Alberta corporation which was a wholly-owned subsidiary of another Alberta corporation. The Alberta parent's shares were owned by the testators 12 grandchildren resident in Nova Scotia. S.2(5) of the Succession Duties Act (Nova Scotia) provided that where a non-resident corporation by reason of the death of a deceased acquired or became "beneficially entitled" to property of the deceased each of the shareholders of the corporation was deemed to be a successor of property of the deceased.

The taxpayer was found to continue to be the beneficial owner of shares that he transferred to a protective trust of which he was the sole beneficiary and one of the three trustees. The trust deed provided broad powers of management to the trustees, accorded them the discretion to pay out income and capital to the taxpayer at any time and provided that the trust property was to be distributed no later than the 21st anniversary of the trust. Woods, J. noted (at para.