Chapter 16: Payment of legacies

Question 1

What method must be used by PRs to vest chattels in beneficiaries?

Answer 1

Transfer is achieved by delivery in return for receipt

At this point, insurance should be cancelled

Question 2

What method must be used by PRs to vest land in beneficiaries?

Answer 2

There must be an assent in writing and the beneficiary should register their interest at HMLR

Insurance should be cancelled at this point

Question 3

What method must be used by PRs to vest company shares in beneficiaries?

Answer 3

A stock transfer form should be completed and sent with an office copy of the grant and share certificate

Question 4

When transferring chattels, company shares and land, who bears the cost of the transfer?

Answer 4

Unless the will states otherwise, the beneficiary will be responsible for the costs of transferring property

Question 6

From which source are pecuniary gifts paid?

Answer 6

The will usually states the source and this is typically the residue. If not, same method used as that of paying unsecured creditors

Question 7

Do pecuniary legacies carry interest?

Answer 7

Yes, at the basic rate allowed by the Court if it is not paid by the due date.

Normally due within 12 months of the testator’s death (executor’s year)

Question 8

What is the doctrine of abatement?

Answer 8

• Applicable when there are insufficient funds to fully satisfy the creditors
• Debts abate (reduce) accordingly and creditors must accepted lower value

Doctrine applies unless priority is given specifically to a legacy

Question 9

Can minors give good receipt?

Answer 9

No, unless the will states otherwise. Generally, anyone with parental responsibility can give valid receipt

Question 10

As minors cannot give valid receipt, what other options do PRs have?

Answer 10

• Hold the property until child turns 18
• Accept receipt from minor’s parents
• Appoint a trustee to receive and hold the property until the child turns 18
• Pay legacy to Court