- Laws of Fiji

Last Updated: 1 December 2016

[TRU 100] Costs and testamentary expenses to be payable out of capital of settled residuary estate of deceased100

100

(1) Where, under the provisions of the will of a person (in this section called “the deceased”) who dies after the commencement of this Act, any real or personal property 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 (which property is hereinafter in this section called “the settled property”) shall be applicable in or towards the payment of the funeral, testamentary and administration expenses, or the debts, legacies and liabilities, or of the interest (if any) thereon, up to the date of the death of the deceased.

(2) The provisions of subsection (1) shall not apply to any commission that is payable to the trustee in respect of any such income as is mentioned in that subsection or to any testamentary or administration expenses that apart from that subsection, would be payable wholly out of income.

(3) 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 funeral, testamentary and administration expenses, and on the debts, legacies and liabilities after the date of death of the deceased and up to the date of payment thereof, and the balance of that income shall be payable to the person for the time being entitled to the income of the settled property.

(4) Where, after the death of the deceased, income, of assets comprised in the settled property that are ultimately applied in or towards payment of the funeral, testamentary and administration expenses, and the debts, legacies and liabilities, arises pending that application, that income shall for the purposes of this section be deemed to be income of the residuary estate of the deceased.

(5) In this section “administration expenses” includes estate duty payable under the provisions of any Act and any other duty payable in any country outside Fiji 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.

(6) Nothing in this section shall apply to any annuity that is payable out of the estate of the deceased.

(7) The provisions of this section shall affect only the rights of beneficiaries under the will as between themselves and shall not affect the rights of creditors of the deceased nor limit any other powers of the trustee.

(8) The provisions of this section shall apply if and so far only as a contrary intention is not expressed in the will, and shall have effect subject to the terms of the will and of any Act as to charges on property of the deceased.