A bequeaths to B "all the money which I have in the 5 1/2 per cent. loan of the Central Government".…
Illustration (i) to section 163 is among the cases where "No one of these legacies has been adeemed". Section 163 provides that where a thing specifically bequeathed changes…
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A bequeaths to B "all the money which I have in the 5 1/2 per cent. loan of the Central Government". During A's lifetime, the securities for that loan are converted into 5 per cent. stock by operation of law. What is the effect on the legacy?
Answer and explanation
Correct answer D
Illustration (i) to section 163 is among the cases where "No one of these legacies has been adeemed". Section 163 provides that where a thing specifically bequeathed changes by operation of law between the will and the death, "the legacy is not adeemed by reason of such change". B therefore takes the converted stock.