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A transfers property to B as trustee. The trust gives successive life interests to A and A's intended…

Section 13 requires a gift to an unborn beneficiary after a prior interest to extend to the whole remaining interest of the transferor. The statutory illustration gives the…

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A transfers property to B as trustee. The trust gives successive life interests to A and A's intended spouse, then a life interest to the eldest son of that intended marriage, with the property passing to A's second son after the eldest son's death. Under section 13 of the Transfer of Property Act, 1882, what happens to the life interest created for the unborn eldest son?

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Answer and explanation

Correct answer D

Section 13 requires a gift to an unborn beneficiary after a prior interest to extend to the whole remaining interest of the transferor.

The statutory illustration gives the eldest son only a life interest and directs that the property pass onward after his death. His life interest therefore does not take effect.

Option feedback

Option A

A's death does not cure the defect in giving the unborn son less than the whole remainder.

Option B

The trustee's death does not cure the statutory defect.

Option C

Expiry of both prior interests does not validate an insufficient gift to an unborn person.

Option D

The unborn eldest son is given only a life interest, with a further gift after his death.

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