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Report No. 110 29.4. Recommendation to revise sections 173-174.- On this basis, we recommend the following changes in the two sections: (i) Section 173 The latter half of section 173, beginning with the words 'notwithstanding that.", should be replaced by the reverse rule, namely, that in cases where the annuity is directed to be paid out of a property etc. there will be a rebuttable presumption that the annuity is perpetual1. (ii) Section 174 Section 174 should the qualified by confining it to cases of perpetual annuity. The revised sections will read as follows: Revised section 173 "173. (1) Subject to the provisions of sub-section (2), where an annuity is created by will, the legatee is entitled to receive it for his life only, unless a contrary intention appears by the will. (2) Where the annuity is directed to be paid out of the property generally, or a sum of money is bequeathed to be invested in the purchase of it, it shall be presumed, until the contrary is proved, that the annuity is perpetual." Revised section 174 "174. (1) Subject to the provisions of sub-section (2), where the will directs, that an annuity shall be provided for any person out of the proceeds of property, or out of property generally or where money is bequeathed to be invested in the purchase of any annuity for any person, on the testator's death, the legacy vests in interest in the legatee, and he is entitled at his option to have an annuity purchased for him or to receive the money appropriated for that purpose by the will. (2) The provisions of sub-section (1) shall not apply where the-annuity is for life only or where it otherwise appears that it is not intended to be perpetual." 1. For draft of the revived section, see below.    |
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