INVESTMENT OF FUNDS TO PROVIDE FOR LEGACIES AND INTEREST ON LEGACIES

(a) Where a general legacy is given for life, the sum bequeathed shall, at or before the end of a year after the death of the testator, be invested in any authorised investment; however, when an annuity is given and no fund is charged by the will with its payment, or appropriated by the will to answer it, a sum sufficient to produce the annuity shall be invested in any authorised investment.

(b) Where a general legacy is given to be paid, at a future time, the personal representative shall invest a sum sufficient to meet it in any authorised investment.  The intermediate interest from the investment shall, unless expressly or by implication be payable to the legatee or another, form part of the residue of the testator's estate.

(c) Where a gift is contingent, the personal representatives shall not be 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 and when it becomes due.

(d) Where a testator has given any property 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 death invested in an authorised investment, shall be converted into money and invested in such an investment.  Until conversion and investment are completed as above, the person, who would for the time being be entitled to the income of the fund when so invested, shall receive interest at 6% per annum upon the market value at the testator's death of such part of the fund as has not been so converted and invested.

(e) A contingent of future, as well as an immediate specific legacy and a residuary bequest not contingent in its terms of property, whether immovable or movable, shall carry the intermediate income of that property from the death of the testator, except so far as the income, or any part thereof, may be otherwise expressly disposed of.

(f) Where no time has been fixed for the payment of a general legacy, interest shall begin to run from the expiration of one year from the testator's death; where a time has been fixed for payment, interest shall begin to run from the time fixed.  In either case, the interest up to that period shall form part of the residue of the testator's estate.  However, interest shall run from the death of the testator where:

• The legacy is bequeathed in satisfaction of a debt; or
• The testator was a parent or more remote ancestor of the legatee or has put himself in the place of the parent of the legatee, and the legatee is a minor, and no specific sum is given by the will for maintenance; or
• The legacy is bequeathed to a minor with a direction to pay for his maintenance thereout.

(g) No interest shall be payable on the arrears of an annuity within the first—year from the death of the testator although a period earlier than the expiration of that year may have been fixed by the will for making first payment of the annuity.

(h) Where a sum of money is directed to be invested to produce an annuity, interest shall be payable on that sum from the death of the testator until so invested.