A directs his trustees to raise a sum of money for his daughter, to invest it, to pay her the income…
Illustration (ii) to section 139 holds that "Her representatives are entitled to the fund". The money was raised for the daughter and severed from A's estate; the investment…
Choose your answer
A directs his trustees to raise a sum of money for his daughter, to invest it, to pay her the income for life, and to divide the principal among her children after her death. The daughter dies without ever having had a child. Who is entitled to the fund?
Answer and explanation
Correct answer C
Illustration (ii) to section 139 holds that "Her representatives are entitled to the fund". The money was raised for the daughter and severed from A's estate; the investment and the gift to her children only restricted how she enjoyed it. Since that restriction cannot operate, section 139 gives her the fund as if the will had contained no such direction.