Victorian Current Acts Victorian Current Acts(1) This section applies if the estate of a deceased person is sufficient to pay its debts and liabilities in full.
(2) Subject to any contrary intention appearing in the deceased's will and in accordance with the Rules, the real and personal estate of the deceased must be applied towards the discharge of the deceased's funeral, testamentary and administration expenses, debts and liabilities in the following order—
(a) from property specifically appropriated, devised, bequeathed, directed to be sold (either by a specific or general description) or subject to a charge for the payment of a debt or liability of the estate;
(b) from property comprising the residuary estate and property in relation to which a disposition in the deceased's will operates as the exercise of a general power of appointment;
(c) from property specifically devised or bequeathed, including property specifically appointed under a general power of appointment and any legacy charged on the property devised, bequeathed or appointed.
(3) For the purpose of subsection (2)—
(a) property must be applied to the discharge of the estate's debts and liabilities rateably according to value; and
(b) if specific property is applied to the payment of a debt or liability of the estate and a legacy is charged on that property—
(i) the legacy and the property must be applied rateably according to the value of the property; and
(ii) the value of that property must be reduced by the amount of the legacy charged on it.
S. 39B inserted by No. 80/2014 s. 11.