King standing after he passed on priest's dagger (7)
I believe the answer is:
obelisk
'dagger' is the definition.
(I know that dagger can be written as obelisk)
'king standing after he passed on priest's' is the wordplay.
'standing' suggests taking the first letters.
'after' means one lot of letters go next to another.
'he passed on' becomes 'ob' (abbreviation for obiit, Latin for 'died').
'priest's' becomes 'eli's' (Biblical character).
The initial letter of 'king' is 'k'.
'ob'+'elis'='obelis'
'k' after 'obelis' is 'OBELISK'.
(Other definitions for obelisk that I've seen before include "Stone pillar tapering towards a point" , "Tapering monumental pillar" , "Tapering pillar erected as monument" , "Kind of monument, tall sloping pillar" , "Tall tapering pillar as monument or landmark" .)