The Intestate Succession (Interest and Capitalisation) Order 1977

• Citation: S.I. 1977/1491
• Sections: 3

Section 1 Citation and Interpretation

(1) This Order may be cited as the Intestate Succession (Interest and Capitalisation) Order 1977 and shall come into operation on 15th September 1977.

(2) The Interpretation Act 1889 shall apply to the interpretation of this Order as it applies to the interpretation of an Act of Parliament.

Section 2 Interest on Statutory Legacy

For the purposes of section 46(1)(i) of the Administration of Estates Act 1925, as it applies both in respect of persons dying before 1953 and in respect of persons dying after 1952, the specified rate of interest shall be 7 per cent. per annum.

Section 3 Capitalisation of Life Interests

(1) Where after the coming into operation of this Order an election is exercised in accordance with subsection (6) or (7) of section 47A of the Administration of Estates Act 1925, the capital value of the life interest of the surviving spouse shall be reckoned in accordance with the following provisions of this article.

(2) There shall be ascertained, by reference to the index compiled by the Financial Times, The Institute of Actuaries and the Faculty of Actuaries, the average gross redemption yield on medium coupon fifteen-year Government Stocks at the date on which the election was exercised or, if the index was not complied on that date, by reference to the index on the last date before that date on which it was complied; and the column which corresponds to that yield in whichever of the Tables set out in the Schedule hereto is applicable to the sex of the surviving spouse shall be the appropriate column for the purposes of paragraph (3) of this article.

(3) The capital value for the purposes of paragraph (1) of this article is the product of the part of the residuary estate (whether or not yielding income) in respect of which the election was exercised and the multiplier shown in the appropriate column opposite the age which the surviving spouse had attained at the date on which the election was exercised.