When some time ago I was flattered with an invitation to read a paper before the Faculty of Actuaries, it was suggested that I should deal with the question of the amount to be deducted, in valuing reversions, for duties which, will be payable out of the funds, in reversion.

This is a somewhat difficult question to deal with directly, and I fear it will be thought that in the following pages the raison d'être of my paper has been forgotten. I may say, however, that while not overlooking the ostensible object in view, I have felt that the best way of giving effect to it is to write a short account of the various death duties which will have to be considered in making such valuations. The only alternative method of dealing with the subject which occurred to me, was to give a series of examples, but this would involve such a large number of instances to meet even a small fraction of the possible cases that may arise, in practice, that I had to abandon all idea of treating the subject in this way. I must fall back upon general principles and not rely on concrete instances, although examples of the general principles are given in a few cases.