39BSolvent estates—pecuniary legacies

39B Solvent estates—pecuniary legacies (1) Subject to subsection (2) and any contrary intention in the deceased's will, any pecuniary legacy must be paid out of— (a) any property comprising the residuary estate; or (b) any property in relation to which a disposition in the deceased's will operates as the exercise of a general power of appointment. (2) If the property referred to in subsection (1) is insufficient to pay any pecuniary legacy, the pecuniary legacy must abate proportionately. X's will gives pecuniary legacies totalling $4000 to A, B and C. A is to receive $500, B is to receive $1500 and C is to receive $2000. X's available property has a value of $2000 and is insufficient to pay the pecuniary legacies. If the pecuniary legacies must abate proportionally and only 50% of the value of the gifts is available to meet them, each gift must abate by 50%. As a result, A receives $250, B receives $750 and C receives $1000. S. 39B(3) inserted by No. 41/2017 s. 15. (3) A beneficiary entitled to a pecuniary legacy is entitled to interest on that legacy or any part of it that is not paid to the beneficiary within 12 months of the date of the deceased's death for the period that it remains unpaid calculated after that 12 month period at the legacy interest rate. No. 3632 s. 35.