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September 2022

Bequests and Legacies Under Wills – Part 2

By Dr. Anup P. Shah, Chartered Accountant
Reading Time 9 mins
INTRODUCTION

In the last month’s feature (BCAJ, August 2022), we examined some of the important principles regarding a Will’s valid bequest, the time when it vests, etc. We continue with an examination of some more interesting and vital features in this respect.


TYPES OF LEGACIES

Specific Legacy

When a specific part of the testator’s property is bequeathed to any person and such property is distinguished from all other parts of his property, then the legacy is known as a specific legacy. E.g., A makes a bequest to C of the diamond ring which was gifted to A by his father. This is a specific legacy in favour of C. Thus, the essence of a specific legacy is that it is distinguishable from the other assets of the testator’s estate. A specific legacy is distinguishable from a general legacy, e.g., a bequest of all the residue estate is a general legacy.

What is a specific legacy and what is a general legacy is a question of fact and needs to be determined on a case-to-case basis. If the legacy exists at the time of the testator’s death and his estate is otherwise insufficient to pay off his debts, then the specific legacy must be given to the legatee. The following are the principles with respect to a specific legacy:

(i)    Usually, a bequest of money, stocks and shares ar
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