Sections 345-348 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.
When a will leaves the residue of an estate to a person for life, the executor must often turn some assets into money and invest it. And when a legacy falls due to a child, someone has to receive it. Sections 345 to 348 deal with both. This article explains them, as per the text of the Act consulted.
Where the residue is bequeathed to a person for life with no direction on securities, the part not already invested in the securities of s.341 is converted into money and invested in them (s.345(1)); s.345 does not apply if the deceased was a Hindu, Muhammadan, Buddhist, Sikh or Jaina or an exempted person (s.345(2)). Until investment is complete, the person entitled to the income receives interest at 4 per cent. per annum on the market-value at the date of death, or six per cent. where the proviso applies (s.347). A minor legatee entitled to immediate payment, with no direction to pay anyone on his behalf, is paid into the Court of the District Judge (s.348).
Section 345: residue for life, no direction on securities
Where the testator has bequeathed the residue of his estate to a person for life without any direction to invest it in any particular securities, so much of it as is not at the time of his death invested in securities of the kind mentioned in section 341 shall be converted into money and invested in such securities (s.345(1)).
Sub-section (2) says: "This section shall not apply if the deceased was a Hindu, Muhammadan, Buddhist, Sikh or Jaina or an exempted person." The text consulted prints nothing more on who falls under which rule, and we add nothing.
Section 346: residue for life, with a direction
Where the testator has bequeathed the residue to a person for life with a direction that it shall be invested in certain specified securities, so much of the estate as is not at the time of his death invested in securities of the specified kind shall be converted into money and invested in such securities. Section 346 has no sub-section carving out the classes named in s.345(2).
Section 347: time, manner and interest until investment
Conversion and investment under sections 345 and 346 "shall be made at such times and in such manner as the executor or administrator thinks fit". Until it is completed, the person who would be for the time being entitled to the income of the fund when so invested shall receive interest at the rate of 4 per cent. per annum upon the market-value, to be computed as at the date of the testator's death, of such part of the fund as has not been so invested.
The proviso: the rate of interest prior to completion of investment shall be six per cent. per annum when the testator was a Hindu, Muhammadan, Buddhist, Sikh or Jaina or an exempted person. The figures "4 per cent." and "six per cent." are as printed.
An invented example: Mr. Bhatt's will leaves the residue of his estate to his widow for life, with no direction about securities. The part of the residue that is not already in the securities of s.341 must be converted and invested under s.345, at times and in a manner the executor thinks fit. Until that is done, the widow, as the person entitled to the income, receives interest on the market-value of the part not yet invested, computed as at the date of death, at the rate printed in s.347. The printed rate is 4 per cent. a year, and six per cent. where the proviso applies.
If you are an executor of such a will and want to plan the conversion and investment, a short legal consultation can help you apply the text.
| Section | Residue for life | Rule |
|---|---|---|
| 345 | No direction on securities | Convert what is not in s.341 securities and invest; not applicable to the classes in s.345(2) |
| 346 | Direction to invest in specified securities | Convert what is not in the specified securities and invest |
| 347 | Both | Time and manner as the executor thinks fit; interest at 4 per cent. (six per cent. under the proviso) on market-value at death until investment is complete |
Section 348: a minor entitled to immediate payment
When it applies
Where, by the terms of a bequest, the legatee is entitled to the immediate payment or possession of the money or thing bequeathed, but is a minor, and there is no direction in the will to pay it to any person on his behalf.
What the executor does
- (1) The executor or administrator shall pay or deliver the money or thing "into the Court of the District Judge, by whom or by whose District Delegate the probate was, or letters of administration with the Will annexed were, granted", to the account of the legatee, unless the legatee is a ward of the Court of Wards.
- (2) If the legatee is a ward of the Court of Wards, the legacy shall be paid to the Court of Wards to his account.
- (3) Such payment into the Court of the District Judge, or to the Court of Wards, as the case may be, is a sufficient discharge for the money so paid.
- (4) Money paid in under this section shall be invested in the purchase of Government securities, which, with the interest, shall be transferred or paid to the person entitled, or otherwise applied for his benefit, as the Judge or the Court of Wards may direct.
The word "Court of Wards" is as printed; the text consulted names no rules for it, and none are stated here. The text also does not say who is a "minor" in this section. The Act refers to the Indian Majority Act, 1875 in its definition of a minor in s.2; check the current law on the age of majority.
A fresh example
Under Mr. Shah's will, his young grandson Aarav is to receive Rs. 2,00,000 at once, and the will does not name anyone to receive it on his behalf. Aarav is a minor. On s.348(1) the executor pays the sum into the Court of the District Judge that granted the probate (or whose Delegate granted it), to Aarav's account, and under (3) that payment is a sufficient discharge. Under (4) the Court invests it in Government securities and later transfers or applies the money for Aarav, as the Judge directs.
Practical points
- Look first at the will. Section 348 applies only where there is no direction in the will to pay a person on the minor's behalf.
- A receipt from the Court discharges the executor. Sub-section (3) says so.
- The Court decides how the money is applied. Sub-section (4) leaves the transfer or application to the Judge or the Court of Wards.
- Check which class applies. Section 345(2) and the proviso to s.347 depend on the class of the deceased as printed.
For the earlier sections on annuities and investment, see our article on sections 338 to 344; for the interest on legacies, see sections 351 to 355. For the position of a minor under another Act, see our post on section 6 of the Limitation Act, 1963, a separate law. Later amendments are not shown in the text consulted and should be checked.
Need help with a legacy to a minor?
If a will leaves a legacy to a child, or you are an executor deciding how to discharge your duty, we can explain the Act's process and help you prepare. Start with our legal consultation service.
Key takeaways
- Residue bequeathed for life is converted and invested in the s.341 kind of securities where no direction is given (s.345(1)), or in the specified securities where a direction is given (s.346).
- Section 345 does not apply to the classes named in s.345(2).
- Interest until investment is 4 per cent. per annum on market-value at death, six per cent. under the proviso (s.347).
- A minor entitled to immediate payment, with no direction to pay a person on his behalf, is paid through the Court of the District Judge or the Court of Wards (s.348).
Read next
- Sections 338-344: payment of annuities and investment to provide for legacies
- Sections 349-350: produce of a specific legacy and of the residuary fund
- Sections 351-355: interest on legacies and annuities
- Executor duties under a will: probate, inventory and distribution
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.