A has bequeathed to B a diamond ring valued at 500 rupees, and to C a horse, valued at 1,000 rupees. It is found necessary to sell all the effects of the testator; and his assets, after payment of debts, are only 1,000 rupees. Of the sum rupees 333-5-4 are to be paid to B, and rupees 666-10-8 to C.
331. Legacies treated as general for purpose of abatement —
For the purpose of abatement, a legacy for life, a sum appropriated by the will to produce an annuity, and the value of an annuity when no sum has been appropriated to produce it, shall be treated as general legacies.
Chapter VIII - Of Assent to a Legacy by Executor or Administrator
332. Assent necessary to complete legatee’s title —
The assent of the executor or administrator is necessary to complete a legatee’s title to his legacy.
(i) A by his will bequeaths to B his Government paper which is in deposit with the Imperial Bank of India. The Bank has no authority to deliver the securities, nor B a right to take possession of them, without the assent of the executor.
(ii) A by his will has bequeathed to C his house in Calcutta in the tenancy of B. C is not entitled to receive the rents without the assent of the executor or administrator.
333. Effect of executor’s assent to specific legacy —
(1) The assent of the executor or administrator to a specific bequest shall be sufficient to divest his interest as executor or administrator therein, and to transfer the subject of the bequest of the legatee, unless the nature or the circumstances of the property require that it shall be transferred in a particular way.
(2) This assent may be verbal, and it may be either express or implied from the conduct of the executor or administrator.
(i) A horse is bequeathed. The executor requests the legatee to dispose of it, or a third party proposes to purchase the horse from the executor, and he directs him to apply to the legatee. Assent to the legacy is implied.
(ii) The interest of a fund is directed by the will to be applied for the maintenance of the legatee during his minority. The executor commences so to apply it. This is an assent to the whole of the bequest.
(iii) A bequest is made of a fund to A and after him to B. The executor pays the interest of the fund to A. This is an implied assent to the bequest to B.
(iv) Executors die after paying all the debts of the testator, but before satisfaction of specific legacies. Assent to the legacies may be presumed.
(v) A person to whom a specific article has been bequeathed takes possession of it and retains it without any objection on the part of the executor. His assent may be presumed.
334. Conditional assent —
The assent of an executor or administrator to a legacy may be conditional and if the condition is one which he has a right to enforce, and it is not performed, there is no assent.
(i) A bequeaths to B his lands of Sultanpur, which at the date of the will, and at the death of A were subject to a mortgage for 10,000 rupees. The executor assents to the bequest, on condition that B shall within a limited time pay the amount due on the mortgage at the testator’s death. The amount is not paid. There is no assent.
(ii) The executor assents to a bequest on condition that the legatee shall pay him a sum of money. The payment is not made. The assent is nevertheless valid.
335. Assent of executor to his own legacy —
(1) When the executor or administrator is a legatee, his assent to his own legacy is necessary to complete his title to it, in the same way as it is required when the bequest is to another person, and his assent may, in like manner, be expressed or implied.
(2) Assent shall be implied if in his manner of administering the property he does any act which is referable to his character of legatee and is not referable to his character of executor or administrator.
An executor takes the rent of a house or the interest of Government securities bequeathed to him, and applies it to his own use. This is assent.
336. Effect of executor’s assent —
The assent of the executor or administrator to a legacy gives effect to it from the death of the testator.
(i) A legatee sells his legacy before it is assented to by the executor. The executor’s subsequent assent operates for the benefit of the purchaser and completes his title to the legacy.
(ii) A bequeaths 1,000 rupees to B with interest from his death. The executor does not assent to his legacy until the expiration of a year from A’s death. B is entitled to interest from the death of A.
337. Executor when to deliver legacies —
An executor or administrator is not bound to pay or deliver any legacy until the expiration of one year from the testator’s death.
A by his will directs his legacies to be paid within six months after his death. The executor is not bound to pay them before the expiration of a year.
Chapter IX - Of the Payment and Apportionment of Annuities
338. Commencement of annuity when no time fixed by will —
Where an annuity is given by a will and no time is fixed for its commencement, it shall commence from the testator’s death, and the first payment shall be made at the expiration of a year next after that event.
339. When annuity, to be paid quarterly or monthly, first falls due —
Where there is a direction that the annuity shall be paid quarterly or monthly, the first payment shall be due at the end of the first quarter, or first month, as the case may be, after the testator’s death; and shall, if the executor or administrator thinks fit, be paid when due, but the executor or administrator shall not be bound to pay it till the end of the year.
340. Dates of successive payments when first payment directed to be made within a given time or on day certain: death of annuitant before date of payment -
(1) Where there is a direction that the first payment of an annuity shall be made within one month or any other division of time from the death of the testator or on a day certain, the successive payments are to be made on the anniversary of the earliest day on which the will authorises the first payment to be made.
(2) If the annuitant dies in the interval between the times of payment, an apportioned share of the annuity shall be paid to his representative.
Chapter X - Of the Investment of Funds to provide for Legacies
341. Investment of sum bequeathed, where legacy, not specific given for life –
Where a legacy, not being a specific legacy, is given for life, the sum bequeathed shall at the end of the year be invested in such securities as the High Court may by any general rule authorise or direct, and the proceeds thereof shall be paid to the legatee as the same shall accrue due.
342. Investment of general legacy, to be paid at future time, disposal of intermediate interest —
(1) Where a general legacy is given to be paid at a future time, the executor or administrator shall invest a sum sufficient to meet it in securities of the kind mentioned in section 341.
(2) The intermediate interest shall form part of the residue of the testator’s estate.
343. Procedure when no fund charged with, or appropriated to annuity —
Where an annuity is given and no fund is charged with its payment or appropriated by the will to answer it, a Government annuity of the specified amount shall be purchased, or, if no such annuity can be obtained, then a sum sufficient to produce the annuity shall be invested for that purpose in securities of the kind mentioned in section 341.
344. Transfer to residuary legatee of contingent bequest —
Where a bequest is contingent, the executor or administrator is not bound to invest the amount of the legacy, but may transfer the whole residue of the estate to the residuary legatee, if any, on his giving sufficient security for the payment of the legacy, if it shall become due.
345. Investment of residue bequeathed for life, without direction to invest in particular securities —
(1) Where the testator has bequeathed the residue of his estate to a person for life without any direction to invest it in any particular securities, so much thereof as is not at the time of the testator’s decease invested in securities of the kind mentioned in section 341 shall be converted into money and invested in such securities.
(2) This section shall not apply if the deceased was a Hindu, Muhammadan, Buddhist, Sikh or Jaina or an exempted person.
346. Investment of residue bequeathed for life, with direction to invest in specified securities —
Where the testator has bequeathed the residue of his estate to a person for life with a direction that it shall be invested in certain specified securities, so much of the estate as is not at the time of his death invested in securities of the specified kind shall be converted into money and invested in such securities.
347. Time and manner of conversion and Investment —
Such conversion and investment as are contemplated by sections 345 and 346 shall be made at such times and in such manner as the executor or administrator thinks fit; and, until such conversion and investment are completed, the person who would be for the time being entitled to the income of the fund when so invested shall receive interest at the rate of 4 per cent. per annum upon the market-value (to be computed as at the date of the testator’s death) of such part of the fund as has not been so invested:
Provided that the rate of interest prior to completion of investment shall be six per cent. per annum when the testator was a Hindu, Muhammadan, Buddhist, Sikh or Jaina or an exempted person.
348. Procedure where minor entitled to immediate payment or possession of bequest, and no direction to pay to person on his behalf —
(1) Where, by the terms of a bequest, the legatee is entitled to the immediate payment or possession of the money or thing bequeathed, but is a minor, and there is no direction in the will to pay it to any person on his behalf, the executor or administrator shall pay or deliver the same into the Court of the District Judge, by whom or by whose District Delegate the probate was, or letters of administration with the will annexed were, granted, to the account of the legatee, unless the legatee is a ward of the Court of Wards.
(2) If the legatee is a ward of the Court of Wards, the legacy shall be paid to the Court of Wards to his account.
(3) Such payment into the Court of the District Judge, or to the Court of Wards, as the case may be, shall be a sufficient discharge for the money so paid.
(4) Money when paid in under this section shall be invested in the purchase of Government securities, which, with the interest thereon, shall be transferred or paid to the person entitled thereto, or otherwise applied for his benefit, as the Judge or the Court of Wards, as the case may be, may direct.
Chapter XI -Of the Produce and Interest of Legacies
349. Legatee’s title to produce of specific legacy —
The legatee of a specific legacy is entitled to the clear produce thereof, if any, from the testator’s death.
Exception —A specific bequest, contingent in its terms, does not comprise the produce of the legacy between the death of the testator and the vesting of the legacy. The clear produce of it forms part of the residue of the testator’s estate.