Administration and Probate Act 1935

On the death of a person intestate as to any real or personal estate, such estate shall be held by his personal representatives – as to the real estate upon trust to sell the same; and as to the personal estate upon trust to call in, sell, and convert into money such part thereof as may not consist of money – with power to postpone such sale and conversion for such a period as the personal representatives, without being liable to account, may think proper, and so that any reversionary interest be not sold until it falls into possession, unless the personal representatives see special reason for sale, and so also that, unless required for purposes of administration owing to want of other assets, personal chattels be not sold except for special reason.

Out of the net money to arise from the sale and conversion of such real and personal estate, after payment of costs, and out of the ready money of the deceased, so far as not disposed of by his will, if any, the personal representative shall pay all such funeral, testamentary and administration expenses, debts, and other liabilities as are properly payable thereout, having regard to the rules of administration contained in this Part, and out of the residue of the said money the personal representative shall set aside a fund sufficient to provide for any pecuniary legacies bequeathed by the will, if any, of the deceased.

During the minority of any beneficiary or the subsistence of any life interest, and pending the distribution of the whole or any part of the estate of the deceased, the personal representatives may invest the residue of the said money, or so much thereof as may not have been distributed, in any investments for the time being authorized by law for the investment of trust money, with power at the discretion of the personal representatives, to change such investments for others of a like nature.

The residue of the said money, and any investments for the time being representing the same, including (but without prejudice to the trust for sale) any part of the estate of the deceased which may be retained unsold and is not required for the administration purposes aforesaid, is in this Act referred to as "the residuary estate of the intestate".

The income (including net rents and profits of real estate and chattels real after payment of rates, taxes, rent, costs of insurance, repairs, and other outgoings properly attributable to income) of so much of the real and personal estate of the deceased as may not be disposed of by his will, if any, or may not be required for the administration purposes aforesaid, may, however such estate is invested, as from the death of the deceased, be treated and applied as income, and for that purpose any necessary apportionment may be made between life tenant and remainderman.

Nothing in this section affects the rights of any creditor of the deceased, or the rights of the Crown in respect of any duty payable under the Deceased Persons' Estates Duties Act 1931.

Where the deceased leaves a will, this section has effect subject to the provisions contained in the will.