Where property comprised in a bequest to two or more persons in succession is not specifically bequeathed, it shall, in the absence of any direction to the contrary, be sold, and the proceeds of the sale shall be invested in such securities as the High Court may by any general rule authorise or direct, and the fund thus constituted shall be enjoyed by the successive legatees according to the terms of the will.
Illustration:
A, having a lease for a term of years, bequeaths all his property to B for life, and, after B's death to C. The lease must be sold, the proceeds invested as stated in this section and the annual income arising from the fund is to be paid to B for life. At B's death the capital of the fund is to be paid to C.
Legal Commentary & Landmark Judgments: Section 148
Section 148 codifies the Rule in Howe v. Earl of Dartmouth, requiring the conversion and investment of wasting or perishable property bequeathed to persons in succession.
Executors managing an estate containing wasting assets (e.g. copyright royalties or terminable mining leases) bequeathed to a widow for life and children thereafter must convert them into government securities under Section 148 to avoid personal liability for breach of trust.