74Application of income of settled residuary estate

74 Application of income of settled residuary estate (1) Where, under the provisions of the will of a person, in this section called ***the deceased***, who dies on or after the first day of January One thousand nine hundred and fifty-four, any real or personal estate included (either by specific or general description) in a residuary gift is settled by way of succession, no part of the income of that property shall be applicable in or towards the payment of the debts and liabilities which have accrued at the date of death or in payment of the funeral, testamentary and administration expenses, or of any legacies bequeathed by the will. (2) The income of the settled property shall be applicable in priority to any other assets in payment of the interest (if any) accruing due on the debts, liabilities, funeral, testamentary and administration expenses, and legacies after the date of the death of the deceased and up to the payment thereof, and the balance of the income shall be payable to the person for the time being entitled to the income of the property. (3) Where, after the death of the deceased, income of assets which are ultimately applied in or towards payment of the debts, liabilities, funeral, testamentary and administration expenses, and legacies, arises pending such application, that income shall, for the purposes of this section, be deemed income of the residuary estate of the deceased. (4) In this section ***administration expenses*** includes duty payable under the **Administration and Probate Act 1958** and estate duty payable under any Commonwealth Act and any other duty payable in any State or country outside Victoria on or consequent on or arising out of the death of the deceased to the extent to which such duties are payable out of residue. (5) This section shall only affect the rights of beneficiaries under the will as between themselves, and shall not affect the rights of creditors of the deceased. (6) This section shall have effect subject to the provisions (if any) to the contrary contained in the will and to the provisions of any Act as to charges on property of the deceased. No. 5770 s. 75.