A directs his trustees to invest a sum of money in a particular way, to pay the interest to his son for…
Illustration (i) to section 140 holds that "The fund, after the son's death, belongs to the estate of the testator". The son was given only the interest, and the fund was…
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A directs his trustees to invest a sum of money in a particular way, to pay the interest to his son for life, and at the son's death to divide the principal among the son's children. The son dies without ever having had a child. To whom does the fund belong?
Answer and explanation
Correct answer B
Illustration (i) to section 140 holds that "The fund, after the son's death, belongs to the estate of the testator". The son was given only the interest, and the fund was not bequeathed to him absolutely so as to sever it from A's estate. Under section 140, where a fund is given only for certain purposes and some cannot be fulfilled, the unexhausted part remains part of the testator's estate.