A holds a lease for a term of years. He bequeaths all his property to B for life, and after B's death…
The Illustration to section 148 holds that "The lease must be sold" and the income paid to B for life, with the capital going to C at B's death. Where property given to…
Choose your answer
A holds a lease for a term of years. He bequeaths all his property to B for life, and after B's death to C, with no direction about the lease. How is the lease to be dealt with?
Answer and explanation
Correct answer A
The Illustration to section 148 holds that "The lease must be sold" and the income paid to B for life, with the capital going to C at B's death. Where property given to persons in succession is not specifically bequeathed, section 148 requires it to be sold and the proceeds invested in authorised securities. The lease passes under a general gift of all A's property, so section 147 does not apply.