Words and Phrases - "beneficially entitled"

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.

In finding that this provision applied notwithstanding the interposition of the subsidiary between the Alberta parent and the estate, Martland J. stated (at pp. 793-794):

"In my view, the corporation is no less 'beneficially entitled' when the property is held by its wholly-owned subsidiary as when it is held in trust for it. Its legal entitlement is even more immediate as it does not have to call upon a third party to perform its obligation as trustee. It only has to exercise its rights as sole shareholder of the subsidiary."