A general direction in the will to pay all legacies free of Chap. XVII. deduction for tax or duty will include legacies given by a codicil. Byne v. Currey, 2 Cr. & Mee. 603; 4 Tyr. 479. See Kirkpatrick v. Bedford, 4 App. C. 96.

But a direction in the will to pay the duty on legacies Legacies herein given. "herein given" will not include legacies given by a codicil. Early v. Benbow, 2 Coll. 354; Gillooly v. Plunkett, 9 L. R. Ir. 324. See Bonner v. Bonner, 13 Ves. 378; Radburn v. Jervis, 3 B. 450.

In some cases, however, such words as "foregoing legacies" or "herein mentioned" have upon the general intention been extended to legacies given by a codicil. Williams v. Hughes,

24 B. 474; Jauncey v. A.-G., 3 Giff. 308.

A direction to pay legacies free of duty is not necessarily limited to pecuniary legacies, but may include a debt which is forgiven, and stock legacies and specific legacies. Morris v. Lirie, 11 L. J. Ch. 172; Ansley v. Cotton, 16 L. J. Ch. 55; In re Johnston; Cockerell v. Earl of Essex, 26 Ch. D. 538.

A direction to pay the legacy duty on the legacies and bequests given by the testator has been held not to include the duty on the proceeds of sale of realty directed to be sold and held on certain trusts. White v. Lake, 6 Eq. 188.

deductions.

Legacies given free from deduction or free from expense, or Free from free from charge or liability, are free from duty. Barksdale v. Gilliatt, 1 Sw. 652; Courtoy v. Vincent, T. & R. 433; Gosden v. Dotterill, 1 M. & K. 56; Louch v. Peters, 1 M. & K. 489; Warbrick v. Varley, 30 B. 241; see Stow v. Davenport, 5 B. & Ad. 357; 2 Nev. & M. 835; and see Turner v. Mullineux, 1 J. & H. 334.

A sum to be paid without any deduction is free from estate duty and from settlement estate duty. In re Parker-Jervis ; Salt v. Locker, (1898) 2 Ch. 642; In re Maryon-Wilson; Wilson v. Maryon-Wilson, (1900) 1 Ch. 565.

A direction to pay the duties "payable by law out of my estate" does not include settlement estate duty. Re Lewis ; Lewis v. Smith, 82 L. T. 291.

A gift of a clear or net sum or annuity is a gift clear of Gift of a legacy duty. Gude v. Mumford, 2 Y. & C. Ex. 448; Haynes

"clear" sum.

Chap. XVII.

Income tax.

v. Haynes, 3 D. M. & G. 590; In re Currie; Bjorkman v. Lord Kimberley, 57 L. J. Ch. 743; 59 L. T. 200; 36 W. R. 752; In re Saunders; Saunders v. Gore, (1898) 1 Ch. 17.

This is the case although in another part of the will a clear yearly sum is expressed to be given free of legacy duty. Re Robins; Nelson v. Robins, 58 L. T. 382.

The same principle applies in the case of an appointment, and a direction to raise a net sum which is to belong to a donee is a gift of the sum free from succession duty. In re Saunders; Saunders v. Gore, (1898) 1 Ch. 17.

A gift of a fund to produce a clear annual sum, which sum is to be paid to the legatee is also free of duty. Morris v. Burton, 11 Sim. 161; Cole's Will, 8 Eq. 271.

The distinction which has been made between such a gift and a gift of a fund to produce a clear annual sum, and to pay the dividends of the stock, and not the exact sum to the legatee, cannot now be relied on. Banks v. Braithwaite, 32 L. J. Ch. 35; see In re Saunders, supra.

The case may be different if the annuity is given to persons in succession who would pay different rates of duty. Sanders v. Kiddell, 7 Sim. 536; Pridie v. Field, 19 B. 497.

A gift to employés of their "full salary" is not free from legacy duty, the word full being referred to incidental deductions. In re Marcus; Marcus v. Marcus, 56 L. J. Ch. 830; 57 L. T. 399.

A direction to pay an annuity free from deduction or abatement will not release the legatee from paying income tax, unless the testator shows that he regards income tax as a deduction. Abadam v. Abadam, 12 W. R. 615; 33 B. 475 ; Turner v. Mullineux, 1 J. & H. 334; Sadler v. Rickards, 4 K. & J. 302; Peareth v. Marriott, 22 Ch. D. 182; Gleadow v. Leetham, 22 Ch. D. 269; In re Buckle; Williams v. Marson, (1894) 1 Ch. 286.

But the testator may by proper words direct the income tax upon an annuity to be paid out of his estate. Festing v. Taylor, 11 W. R. 70; 3 B. & S. 217, 235; Lord Lorat v. Duchess of Leeds, 10 W. R. 397; 2 Dr. & Sm. 62; In re Bannerman's Estate Bannerman v. Young, 21 Ch. D. 105.

CHAPTER XVIII.

THE MEANING OF CERTAIN WORDS.

it includes.

not include.

Chap. XVIII. MONEY includes bank notes (a), money at the bank on a Money-what current account as well as on deposit (b), money in the hands of an agent of the testator (c), apparently arrears of a superannuation allowance from government, and money payable by a friendly society for funeral expenses (d), and any money, of which at the time of the testator's death he might have claimed immediate payment (e). Chapmanv. Hart, 1 Ves. Sen. 271 (a); Manning v. Purcell, 7 D. M. & G. 55 (b) ; Ogle v. Knipe, 8 Eq. 434 (c); Collins v. Collins, 12 Eq. 455 (d); Byromv. Brandreth, 16 Eq. 475 (e). It will not pass an apportioned part of an annuity nor What it does accruing interest or dividends (a), nor money deposited with a stakeholder to abide the event of a bet (b), nor money due on a current account from a salesmaster (c), nor a legacy not acknowledged to be at the testator's disposal (d), nor stock in the funds (), nor a sum due to the testator (f). Byrom v. Brandreth, 16 Eq. 475; see Re Bearan; Bearan v. Beavan, 53 L. T. 245 (a); Manning v. Purcell, 7 D. M. & G. 55 (b); Smith v. Butler, 3 J. & L. 565; De Roebuck v. Lord Cloncurry, I. R. 5 Eq. 588 (c); Byrom v. Brandreth, 16 Eq. 475 (d); Hotham v. Sutton, 15 Ves. 319; Gosden v. Dotterill, 1 M. & K. 56; Ommaney v. Butcher, T. & R. 260; Lowe v. Thomas, Kay, 369; 5 D. M. & G. 315; Collins v. Collins, 12 Eq. 455 (e); Dillon v. M'Donnell, 7 L. R. Ir. 335 (ƒ).

Money will, however, pass stock where there is at the date of the will and the death no money properly so called; or where stock is expressly referred to as money. Chapman v. Reynolds, 28 B. 221; Newman v. Newman, 26 B. 218.

Chap. XVIII.

When the word money will pass the residue.

Gifts of resi

due of money after payment of debts and legacies.

In some cases a larger sense has been given to the term money, and it has been held to pass the residuary personalty :

1. It is clear that a gift of "the whole of my money" will only pass money properly so called, though there may be very little of it, and it is given for life with remainders, at any rate where the gift is followed by specific or general bequests. Lowe v. Thomas, Kay, 369; 5 D. M. & G. 315; Larner v. Larner, 3 Dr. 704.

So, too, money must be construed strictly where it is used as one of several terms of description, showing that it was not alone meant to pass the personal estate. Cowling v. Cowling, 26 B. 449; see In bonis Aston, 30 W. R. 92.

2. But where the testator declared himself desirous of making a settlement of his affairs, and appointed executors to take and receive all moneys in his possession or due to him, the whole personal estate was held to pass. Waite v. Combes, 5 De G. & S. 676.

And a gift of all my money except a sum "invested in the Belgravian Dairy Co." was held to pass the general personal estate. Re Buller; Buller v. Giberne, 74 L. T. 406.

And in Prichard v. Prichard, 11 Eq. 232, the whole personal estate was held to pass under a gift of the "income of my principal money" to A for life, and afterwards to be divided among her children, apparently on the ground that there was only a sum of 2391. money proper at the testator's death. See Cooke v. Wagster, 2 Sm. & G. 296.

And in In re Cadogan; Cadogan v. Palagi, 25 Ch. D. 154, the whole personal estate passed under a gift of "one half of the money of which I am possessed" to A, "and the remainder to" B. See, too, In re Townley; Townley v. Townley, 32 W. R. 549.

When there is a direction to pay debts, or legacies have been given, and the residue of money is then given, the whole personal estate will pass. The general personalty being liable to pay debts and legacies, the residue must be a residue ejusdem generis. Lynn v. Kerridge, West. Rep. tem. Hard. 172; Legge v. Asgill, T. & R. 265, n.; Rogers v. Thomas, 2 Kee. 8; Dowson v. Gaskoin, ib. 14; Stocks v. Barré, Jo. 54;

Barrett v. White, 24 L. J. Ch. 724; 1 Jur. N. S. 652; Grosvenor Chap. XVIII. v. Durston, 25 B. 99; In bonis White, 7 P. D. 65; In re Hart; Hart v. Hernandez, 52 L. T. 217; In re Smith; Henderson-Roe v. Hitchins, 42 Ch. D. 302; In re Egan; Mills v. Penton, (1899) 1 Ch. 688. See, too, Langdale v. Whitfield, 4 K. & J. 426; Re Maclean; Williams v. Nelson, 11 T. L. R. 82.

In such a case the fact that a specific legacy is afterwards given makes no difference. Montagu v. Earl of Sandwich, 33 B. 324; In re Pringle; Walker v. Stuart, 17 Ch. D. 819.

Similarly, where the testator gave his money and goods to his wife for life, and at her death bequeathed certain legacies and the remainder of his property, the money was held to include the personal estate, as the testator showed that he was disposing at his wife's death of the same property as he meant her to have for life. Glendening v. Glendening v. Glendening,

9 B. 324.

A gift of "the rest of my money however invested" has
been held to pass the residuary personal estate.
In re
Pringle; Walker v. Stuart, 17 Ch. D. 819.

Of course, if there is an express gift of residue, money must be construed in its strict sense. Willis v. Plaskett, 4 B. 208.

See as to the meaning of a direction to pay debts out of money, when there is a residuary bequest, Lloyd v. Lloyd, 54 L. T. 841; 34 W. R. 608.

And a gift by codicil of "all moneys that may be left after my decease" where there is a gift of residue in the will, passes only money properly so called. Williams v. Williams,

8 Ch. D. 789.

Such words as "ready money" (a), or "money to my Ready account" (b), or "money in bonds or consols or anything money, &c. else" (c), or money referred to as "cash" (d), would require a very strong context to pass more than would be included in the words if taken in the ordinary sense. Re Powell, Jo. 49; Beran v. Beran, 5 L. R. Ir. 57 (a); Hastings v. Hane, 6 Sim. 67 (b); Stooke v. Stooke, 35 B. 396 (c); Nevinson v. Lady Lennard, 34 B. 487 (d); see In re Sutton; Stone v. A.-G., 28 Ch. D. 464.