A bequeaths the residue of his estate to be divided equally among his daughters, with a direction that…
Illustration (ii) to section 140 holds that "The fund belongs to the estate of the testator". Because the daughters are to have "the interest only", the fund was given for…
Choose your answer
A bequeaths the residue of his estate to be divided equally among his daughters, with a direction that they are to have the interest only during their lives, and that on their death the fund shall go to their children. The daughters have no children. Who takes the fund after the daughters die?
Answer and explanation
Correct answer D
Illustration (ii) to section 140 holds that "The fund belongs to the estate of the testator". Because the daughters are to have "the interest only", the fund was given for limited purposes and was not severed from A's estate in their favour. Section 140 then keeps whatever is not used for the stated purposes in the testator's estate; contrast section 139, where an absolute gift is merely restricted in enjoyment.