106Spouse’s statutory legacy

106 Spouse’s statutory legacy

106 Spouse’s statutory legacy

(1) The statutory legacy for a spouse consists of—

(a) the CPI adjusted legacy, and

(b) if the statutory legacy is not paid, or not paid in full, within 1 year after the intestate’s death—interest at the relevant rate on the amount outstanding from time to time (excluding interest) from the first anniversary of the intestate’s death to the date of payment of the legacy in full.

(2) The CPI adjusted legacy is to be determined in accordance with the following formula—

where—

R represents the CPI adjusted legacy.

A is $350,000.

C represents the Consumer Price Index number for the last quarter for which such a number was published before the date on which the intestate died.

D represents the Consumer Price Index number for the December 2005 quarter.

(3) If, however, a spouse is entitled to a statutory legacy under this Act and under the law of another Australian jurisdiction or jurisdictions—

(a) the spouse’s statutory legacy is an amount equivalent to the highest amount fixed by way of statutory legacy under any of the relevant laws (including this Act), but

(b) the following qualifications apply—

(i) amounts received by the spouse, by way of statutory legacy, under any of the other relevant laws are taken to have been paid towards satisfaction of the spouse’s statutory legacy under this Act,

(ii) if any of the relevant laws contain no provision corresponding to subparagraph (i), no amount is payable by way of statutory legacy under this Act until the spouse’s entitlement under that law is satisfied, or the spouse renounces the spouse’s entitlement to payment, or further payment, by way of statutory legacy, under that law.

(4) If the value of an intestate estate is insufficient to allow for the payment of a statutory legacy (or statutory legacies) in full, the statutory legacy abates to the necessary extent and, if 2 or more statutory legacies are payable, they abate ratably.

(5) The relevant rate of interest is the rate that lies 2% above the cash rate last published by the Reserve Bank of Australia before 1 January in the calendar year in which interest begins to accrue.