Succession Act, 1925 — Section 172: Bequest of interest or produce of fund

172. Bequest of interest or produce of fund. Where the interest or produce of a fund is bequeathed to any person, and the will affords no indication of an intention that the enjoyment of the bequest should be of limited duration, the principal, as well as the interest, shall belong to the legatee. Illustrations

(i)A bequeaths to B the interest of his 5 per cent. promissory notes of the CHAPTER XX OF BEQUESTS OF ANNUITIES 173. Annuity created by will payable for life only unless contrary intention appears by will. Where an annuity is created by will, the legatee is entitled to receive it for his life only, unless a contrary intention appears by the will, notwithstanding that the annuity is directed to be paid out of the property generally, or that a sum of money is bequeathed to be invested in the purchase of it. Illustrations

(i)A bequeaths to B 500 rupees a year. B is entitled during his life to receive the annual sum of 500 rupees.

(ii)A bequeaths to B the sum of 500 rupees monthly. B is entitled during his life to receive the sum of 500 rupees every month.

(iii)A bequeaths an annuity of 500 rupees to B for life, and on B’s death to C. B is entitled to an annuity of 500 rupees during his life. C, if he survives B, is entitled to an annuity of 500 rupees from B’s death until his own death. 174. Period of vesting where will directs that annuity be provided out of proceeds of property, or out of property generally, or where money bequeathed to be invested in purchase of annuity. Where the will directs that an annuity shall be provided for any person out of the proceeds of property, or out of property generally, or where money is bequeathed to be invested in the purchase of any annuity for any person, on the testator’s death, the legacy vests in interest in the legatee, and he is entitled at his option to have an annuity purchased for him or to receive the money appropriated for that purpose by the will. Illustrations

(i)A by his will directs that his executors shall, out of his property, purchase an annuity of 1, 000 rupees for B. B is entitled at his option to have an annuity of 1, 000 rupees for his life purchased for him or to receive such a sum as will be sufficient for the purchase of such an annuity.

(ii)A bequeaths a fund to B for his life, and directs that after B’s death, it shall be laid out in the purchase of an annuity for C. B and C survive the testator. C dies in B’s lifetime. On B’s death the fund belongs to the representative of C.