We have an estate where the testatrix gives her interest in her property to her partner, on a Life Interest Trust, with remainder over to her adult child. This accounts for most of the estate which means during the life tenant’s life, the residuary beneficiary will receive nothing. The will has a number of pecuniary legacies and there is still insufficient cash in the estate to pay these in full. The pecuniary legatees will of course see their legacies abated pro-rata.
Does the life interest trust remain and the pecuniary legatees receive only abated legacies or upon the death of the life tenant, does the adult child then have to make good any shortfall in respect of the pecuniary legacies unpaid? If so, will there be interest added as the shortfall will most likely be paid after a year following death?
Many thanks