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A transfer instrument creates a life interest in favour of a living person and a subsequent interest…

Section 13 permits a transfer for the benefit of a person not yet in existence, subject to a prior interest created by the same transfer. The later interest takes effect…

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A transfer instrument creates a life interest in favour of a living person and a subsequent interest for the benefit of a person who is not yet in existence. Under section 13 of the Transfer of Property Act, 1882, what interest must the second disposition cover?

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Answer and explanation

Correct answer A

Section 13 permits a transfer for the benefit of a person not yet in existence, subject to a prior interest created by the same transfer. The later interest takes effect only if it extends to the whole remaining interest of the transferor.

Option feedback

Option A

Section 13 requires the interest for the unborn beneficiary to extend to the entire remaining interest of the transferor.

Option B

A life interest that leaves part of the remainder with the transferor is insufficient.

Option C

A fraction of the transferor’s remaining interest does not satisfy section 13.

Option D

Appointment or lifespan of a guardian is not the statutory test.

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