Chapter 16: Payment of Legacies Flashcards
How do PRs vest chattels to the beneficiaries?
Transfer achieved by delivery, in return for a receipt.
Insurance should be cancelled
How do PRs vest company shares to the beneficiaries?
Stock transfer form should be completed + sent with an office copy of the grant and the share certificate
How do PRs vest land to the beneficiaries?
Transfer requires an assent in writing.
Insurance should be cancelled.
The beneficiary needs to register their interest at HMLR
Who bears the cost of transfer?
The beneficiary, unless the will says otherwise
What is the procedure for paying pecuniary legacies?
The same as payment of unsecured debts.
E.g., residue may be left ‘subject to’ or ‘after payment of’ the ‘debts and legacies’, or on trust for sale with payment out of the proceeds of ‘debts and legacies’ before division.
When do pecuniary legacies carry interest?
Carry interest (at the basic rate allowed on funds in court) if not paid by the due date.
Normally due within 12 months after the testator’s death (‘the executors’ year’)
What is abatement?
Abatement of debts and legacies is a common law doctrine of wills that holds when the assets of a deceased person are not sufficient to satisfy fully all the creditors, their debts must abate (or reduce) proportionately, and the creditor must accept a lower value in satisfaction of the debt.
What is appropriation?
A beneficiary can ask the PRs to use a particular asset to satisfy a pecuniary legacy.
What will PRs do to prove they have satisfied their obligations?
PRs will typically obtain a receipt from a beneficiary to prove the PRs have satisfied their obligations.
Who cannot give good receipt?
Minors cannot give a good receipt unless the will specifies otherwise
What can the PRs do if there a minor beneficiaries?
- Hold the property until the child reaches age 18,
- Use the power of appropriation, with the minor’s parent or guardian or the court giving any consent,
- Appoint trustees to receive and hold the property until the child attains age 18, or
- Obtain their discharge by payment of the legacy into court
