Report No. 110
Produce and Interest of Legacies (Sections 349 to 355)
Sections 349 to 355 contain provisions relating to the produce and interest of legacies.
The provisions in sections 349 to 355, though apparently dealing with matters of detail, are based on certain broad principles, namely, that:-
(i) The legatee's title (subject to the provisions as to assent of the executor or administrator) is effective from the date of the testator's death, so that the "clear produce" of the legacy belongs to him from the date of such death; sections 349-350.
(ii) the right to demand payment of the legacy, however, does not ordinarily arise unless one year has expired since such death- a principle that explains the provisions (section 351, main paragraph and section 354) as to commencement of interest.
(iii) in certain exceptional cases, however, interest may start running before the expiry of one year: Section 349, exception, section 352 and section 355. These exceptional cases are based on the existence of circumstances from which a contrary intention could be reasonably inferred.
The rate of interest is dealt with in section 353.