Chapter 16: Payment of Legacies

• Payment of legacies


  1. Pay off debts of deceased

  2. Pay funeral and administrative expenses

  3. Give effect to gifts in will
• Specific legacies and devises

  Gifts of specific property made in a will
• Transferring chattels


  1. Deliver and obtain receipt

  2. Cancel insurance
• Transferring company shares


  1. Complete stock transfer form

  2. Send with grant and share certificate
• Transferring land


  1. Obtain written assent

  2. Cancel insurance

  3. Beneficiary registers interest at Land Registry
• Costs of transfer are borne by beneficiary unless will says otherwise
• Beneficiaries are entitled to income arising since deceased's death
• Pecuniary legacies


  Monetary gifts made in a will
• Paying pecuniary legacies


  1. Use same procedure as for unsecured debts

  2. Residue may be left "subject to" or "after payment of" debts and legacies
• Interest and due date

  Pecuniary legacies carry interest if not paid by due date (12 months after death)
• Abatement


  When assets are insufficient to fully satisfy all debts and legacies, they must abate (reduce) proportionately
• Appropriation


  Beneficiary can ask PRs to use a particular asset to satisfy a pecuniary legacy
• Obtaining receipts


  1. PRs obtain receipt from beneficiary to prove obligations satisfied

  2. Minors cannot give good receipt unless will specifies otherwise

  3. Options for minors: hold property until 18, use appropriation, appoint trustees, pay legacy into court