135. 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 to be made from time
to time, authorise or direct; and the fund thus constituted shall be enjoyed by
the successive legatees according to the terms of the will.
136. Nonabatement of specific legacies.
If there is a deficiency of assets to pay legacies, a specific legacy is not liable
to abate with the general legacies.
PART XX—DEMONSTRATIVE LEGACIES.
137. Demonstrative legacies.
(1) 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 that fund or stock the primary fund or stock out of which
payment is to be made, the legacy is said to be demonstrative.
(2) The distinction between a specific legacy and a demonstrative
legacy is that—
(a) where specified property is given to the legatee, the legacy is
specific; and
(b) where the legacy is directed to be paid out of a specified
property, it is demonstrative.
138. Order of payment when legacy directed to be paid out of a fund
specifically bequeathed.
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.
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