A bequeaths to B—
"10,000 rupees of my funded property":
"10,000 rupees of my property now invested in shares of the East Indian Railway Company":
"10,000 rupees, at present secured by mortgage of Rampur factory".
No one of these legacies is specific.
144. Bequest of stock where testator had, at date of will, equal or greater amount of stock of same kind —
Where a bequest is made in general terms of a certain amount of any kind of stock, the legacy is not specific merely because the testator was, at the date of his will, possessed of stock of the specified kind, to an equal or greater amount than the amount bequeathed.
A bequeaths to B 5,000 rupees five per cent. Government securities. A had at the date of the will five per cent. Government securities for 5,000 rupees. The legacy is not specific.
145. Bequest of money where not payable until part of testator’s property disposed of in certain way —
A money legacy is not specific merely because the will directs its payment to be postponed until some part of the property of the testator has been reduced to a certain form, or remitted to a certain place.
A bequeaths to B 10,000 rupees and directs that this legacy shall be paid as soon as A’s property in India shall be realised in England. The legacy is not specific.
146. When enumerated articles not deemed specifically bequeathed —
Where a will contains a bequest of the residue of the testator’s property along with an enumeration of some items of property not previously bequeathed, the articles enumerated shall not be deemed to be specifically bequeathed.
147. Retention, in form, of specific bequest to several persons in succession —
Where property is specifically bequeathed to two or more persons in succession, it shall be retained in the form in which the testator left it, although it may be of such a nature that its value is continually decreasing.
(i) A, having lease of a house for a term of years, fifteen of which were unexpired at the time of his death, has bequeathed the lease to B for his life, and after B’s death to C. B is to enjoy the property as A left it, although, if B lives for fifteen years, C can take nothing under the bequest.
(ii) A, having an annuity during the life of B, bequeaths it to C, for his life, and, after C’s death, to D. C is to enjoy the annuity as A left it, although, if B dies before D, D can take nothing under the bequest.
148. Sale and investment of proceeds of property bequeathed to two or more persons in succession —
Where property comprised in a bequest to two or more persons in succession is not specifically bequeathed, it shall, in the absence of any direction to the contrary, be sold, and the proceeds of the sale shall be invested in such securities as the High Court may by any general rule authorise or direct, and the fund thus constituted shall be enjoyed by the successive legatees according to the terms of the will.
A, having a lease for a term of years, bequeaths all his property to B for life, and, after B’s death to C. The lease must be sold, the proceeds invested as stated in this section and the annual income arising from the fund is to be paid to B for life. At B’s death the capital of the fund is to be paid to C.
149. Where deficiency of assets to pay legacies, specific legacy not to abate with general legacies —
If there is a deficiency of assets to pay legacies, a specific legacy is not liable to abate with the general legacies.
Chapter XV - Of Demonstrative Legacies
150. Demonstrative legacy defined —
Where a testator bequeaths a certain sum of money, or a certain quantity of any other commodity, and refers to a particular fund or stock so as to constitute the same the primary fund or stock out of which payment is to be made, the legacy is said to be demonstrative.
Explanation —The distinction between a specific legacy and a demonstrative legacy consists in this, that—
where specified property is given to the legatee, the legacy is specific;
where the legacy is directed to be paid out of specified property, it is demonstrative.
(i) A bequeaths to B 1,000 rupees, being part of a debt due to him from W. He also bequeaths to C 1,000 rupees to be paid out of the debt due to him from W. The legacy to B is specific, the legacy to C is demonstrative.
(ii) A bequeaths to B—
"ten bushels of the corn which shall grow in my field of Green Acre":
"80 chests of the indigo which shall be made at my factory of Rampur":
"10,000 rupees out of my five per cent. promissory notes of the Central Government":
an annuity of 500 rupees "from my funded property":
"1,000 rupees out of the sum of 2,000 rupees due to me by C":
an annuity, and directs it to be paid "out of the rents arising from my taluq of Ramnagar".
(iii) A bequeaths to B—
"10,000 rupees out of my estate at Ramnagar", or charges it on his estate at Ramnagar:
"10,000 rupees, being my share of the capital embarked in a certain business".
Each of these bequests is demonstrative.
151. Order of payment when legacy directed to be paid out of fund the subject of specific legacy —
Where a portion of a fund is specifically bequeathed and a legacy is directed to be paid out of the same fund, the portion specifically bequeathed shall first be paid to the legatee, and the demonstrative legacy shall be paid out of the residue of the fund and, so far as the residue shall be deficient, out of the general assets of the testator.