Sections 150-151 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Between a specific legacy (a particular thing) and a general legacy (a sum with no particular source) sits a third kind: the demonstrative legacy. It is a sum or quantity that the testator says is to be paid out of a named fund. Section 150 defines it and sets it apart from a specific legacy, and section 151 says what happens when the named fund is not enough.
As per the text of the Act consulted, where a testator bequeaths a certain sum of money, or a certain quantity of any other commodity, and refers to a particular fund or stock so as to make it the primary fund or stock out of which payment is to be made, the legacy is demonstrative (s.150). The Explanation gives the test: where specified property is given, the legacy is specific; where the legacy is directed to be paid out of specified property, it is demonstrative. If a portion of a fund is specifically bequeathed and a legacy is directed to be paid out of the same fund, the specific portion is paid first, the demonstrative legacy comes out of the residue of the fund, and any deficiency is met out of the general assets (s.151).
Section 150: the definition
Section 150 is built from three parts:
- A certain sum of money, or a certain quantity of any other commodity, is bequeathed.
- The testator refers to a particular fund or stock.
- That fund or stock is made the primary source for payment.
When all three are present, the legacy is said to be demonstrative.
The word "primary" is important. The fund is where payment is to come from first; section 151 shows that the general estate stands behind it if the fund runs short. A demonstrative legacy is therefore a sum or quantity that has a named source, and not merely a description of the source (compare section 143 on a sum whose investment is only described, covered in our article on specific bequests of stock, money and articles).
The Explanation: the test
The Explanation puts the distinction in two lines. Where specified property is given to the legatee, the legacy is specific. Where the legacy is directed to be paid out of specified property, it is demonstrative. For the first kind see our article on specific legacy defined.
If a will you are reading has a gift tied to an account, a debt or a stock, and you are unsure which kind it is, a legal consultation helps because the kind decides the order of payment and what happens if the fund is gone.
The Act's illustrations to section 150
The illustrations use old sums, a field called Green Acre, and an estate at Ramnagar. They are the Act's illustrations, not current facts.
| No. | What A bequeaths | Result |
|---|---|---|
| (i) | To B, 1,000 rupees being part of a debt due to A from W. To C, 1,000 rupees to be paid out of the debt due from W | The legacy to B is specific; the legacy to C is demonstrative |
| (ii) | To B: ten bushels of the corn that shall grow in the field of Green Acre; 80 chests of the indigo that shall be made at the Rampur factory; 10,000 rupees out of five per cent promissory notes of the Central Government; an annuity of 500 rupees from funded property; 1,000 rupees out of 2,000 rupees due from C; or an annuity directed to be paid out of the rents of the taluq of Ramnagar | Items of the demonstrative kind (see the printing note below) |
| (iii) | To B: 10,000 rupees out of the estate at Ramnagar, or charged on that estate; 10,000 rupees being his share of the capital embarked in a certain business | Each of these bequests is demonstrative |
Printing note: the copy prints the closing sentence "Each of these bequests is demonstrative" once, after illustration (iii). Illustration (ii) has no closing sentence of its own in the copy, although its items all name a source out of which payment is to be made.
Reading illustration (i)
The first illustration is the sharpest comparison in the Act. Both B and C are to receive 1,000 rupees connected with the debt due from W. B receives "1,000 rupees, being part of a debt". The thing given is part of the debt itself, so it is specific. C receives 1,000 rupees "to be paid out of" the debt. The sum is given; the debt is only the source, so it is demonstrative.
Section 151: order of payment from the fund
Section 151 states that where a portion of a fund is specifically bequeathed and a legacy is directed to be paid out of the same fund, the portion specifically bequeathed shall first be paid to the legatee, and the demonstrative legacy shall be paid out of the residue of the fund and, so far as the residue shall be deficient, out of the general assets of the testator.
The Act's illustration continues the first one: A bequeaths to B 1,000 rupees, being part of a debt due from W, and to C 1,000 rupees to be paid out of the debt due from W. The debt due from W is only 1,500 rupees. Of these 1,500 rupees, 1,000 belong to B and 500 are to be paid to C. C is also to receive 500 rupees out of the general assets of the testator.
The order is therefore:
- The specific portion (B's 1,000 rupees) is paid first from the fund.
- The demonstrative legacy (C's 1,000 rupees) is paid from what is left of the fund (500 rupees).
- The shortfall (500 rupees) is made up from the general assets.
This is the practical difference between a demonstrative and a specific legacy. A specific legacy depends entirely on the thing existing. A demonstrative legacy is a charge on a fund first, and on the general estate if the fund is not enough. For ademption of a specific legacy see our article on sections 152 to 156.
Examples with invented names
Demonstrative. Sarita's will says: "I give 3 lakh rupees to my nephew Tarun, to be paid out of the money lying in my savings account with the cooperative bank." A certain sum is bequeathed, and the account is the primary source. It is demonstrative. If the account holds only 2 lakh rupees at her death, Tarun receives that and the remaining 1 lakh rupees from the general assets, on the section 151 order.
Specific. Sarita's will also says: "I give the balance in my savings account to my niece." Specified property is given, so that legacy is specific.
Both from the same fund. If the account holds 3.5 lakh rupees, and the will specifically gives 2 lakh rupees of it to the niece and directs 3 lakh rupees to Tarun out of it, the niece's portion is paid first, Tarun's legacy comes from the 1.5 lakh rupees left, and the balance of 1.5 lakh rupees comes from the general assets.
Where the sections apply
Schedule III lists sections 150 and 151 among the sections of Part VI that section 57 applies to the wills and codicils of Hindus, Buddhists, Sikhs and Jainas described there. Section 58 as printed says Part VI does not apply to the testamentary succession to the property of any Muhammadan. See our article on wills of Hindus, Buddhists, Sikhs and Jainas and Schedule III. The print consulted shows amendments only up to the Indian Succession (Amendment) Act, 2002 (26 of 2002); check for later amendments.
Need help with a legacy paid out of a fund?
If a will ties a gift to a particular account, debt or stock, the executor needs to know which kind of legacy it is before paying. You can ask for a legal consultation to go through the clause.
Key takeaways
- A demonstrative legacy is a certain sum or quantity with a named primary fund (s.150).
- If specified property is given, the legacy is specific; if it is to be paid out of specified property, it is demonstrative.
- If a portion of a fund is specifically bequeathed and a legacy is to be paid out of the same fund, the specific portion is paid first (s.151).
- A shortfall in the fund is made up from the general assets.
Read next
- Section 142: specific legacy defined
- Sections 143 to 149: specific bequests of stock, money and articles
- Sections 152 to 156: ademption of a specific legacy
- Sections 326 to 331: abatement of legacies
Disclaimer: Based on an unofficial print of the Indian Succession Act, 1925 showing amendments up to the Indian Succession (Amendment) Act, 2002 (26 of 2002), as consulted on 2 October 2026. It explains the words of the statute only; later amendments, State amendments and rules, court fees and the way courts apply these sections should be checked. This article is general information, not legal advice; check the official text before acting.