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Annuities - Right Of Legatee, For Whose Benefit The Purchase Of An Annuity Is Directed, To Receive The Principal In Lieu Thereof, Raymond R. Allen

Michigan Law Review

The rule has become well established in England that, where a testator bequeaths an annuity for life to his beneficiary and directs his executor or trustee to purchase the annuity with assets of the estate, the annuitant has an option to demand the purchase money in lieu of the annuity. The direction to purchase the annuity is clothed by the courts with a power to change the mere gift of an annuity into a gift in the alternative of the principal or the annuity. This direction indicates the will of the testator that a fund representing the principal of the …