A transfers ₹10,000 in four percent Government promissory notes to B, in trust to pay the interest…
C receives only the interest for life, not the capital. When C dies the stated trust purpose has ended without exhausting the fund. Section 83 illustration (b) expressly…
Choose your answer
A transfers ₹10,000 in four percent Government promissory notes to B, in trust to pay the interest annually accruing due to C for her life. A dies. Then C dies. Which of the following is correct?
Answer and explanation
Correct answer B
C receives only the interest for life, not the capital. When C dies the stated trust purpose has ended without exhausting the fund. Section 83 illustration (b) expressly returns this fund to the benefit of A’s legal representative; neither C’s heirs nor B personally become entitled to the capital under these terms.
Practice for these exams
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Bihar Judicial Services