Succession Act, 1925 — Section 150: Demonstrative legacy defined

150. Demonstrative legacy defined. 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 the same the primary fund or stock out of which payment is to be made, the legacy is said to be demonstrative. Explanation.―The distinction between a specific legacy and a demonstrative legacy consists in this, that― where specified property is given to the legatee, the legacy is specific; where the legacy is directed to be paid out of specified property, it is demonstrative. Illustrations

(i)A bequeaths to B, 1, 000 rupees, being part of a debt due to him from W. He also bequeaths to C 1, 000 rupees to be paid out of the debt due to him from W. The legacy to B is specific, the legacy to C is demonstrative.

(ii)A bequeaths to B “ten bushels of the corn which shall grow in my field of Green Acre”: “80 chests of the indigo which shall be made at my factory of 1 [Rahimyarkhan]”: “10, 000 rupees out of my five per cent. promissory notes of the 2 [Federal Government]”: an annuity of 500 rupees “from my funded property”: “1, 000 rupees out of the sum of 2, 000 rupees due to me by C”: an annuity, and directs it to be paid “out of the rents arising from my taluk of 3[Nawabshah]”.

(iii)A bequeaths to B “ 10, 000 rupees out of my estate at 3[Nawabshah],” or charges it on his estate at 3[Nawabshah]:” “10, 000 rupees, being my share of the capital embarked in a certain business”, Each of these bequests is demonstrative. 151. Order of payment when legacy directed to be paid out of fund the subject of specific legacy. 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. Illustration A bequeaths to B 1, 000 rupees, being part of a debt due to him from W. He also bequeaths to C 1, 000 rupees to be paid out of the debt due to him from W. The debt due to A from W is only 1,500 rupees of these 1, 500 rupees, 1, 000 rupees belong to B, and 500 rupees are to be paid to C. C is also to receive 500 rupees out of the general assets of the testator. CHAPTER XVI OF ADEMPTION OF LEGACIES