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Under section 13 of the Transfer of Property Act, 1882, which arrangement can create a valid interest…

Section 13 of the Transfer of Property Act, 1882 allows an interest to be created for an unborn beneficiary subject to a prior interest created by the same transfer. The…

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Under section 13 of the Transfer of Property Act, 1882, which arrangement can create a valid interest for an unborn beneficiary?

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Answer and explanation

Correct answer A

Section 13 of the Transfer of Property Act, 1882 allows an interest to be created for an unborn beneficiary subject to a prior interest created by the same transfer. The interest for the beneficiary must extend to the whole of the transferor’s remaining interest in the property.

Option feedback

Option A

Section 13 requires both the prior interest and the transferor’s whole remaining interest for the unborn beneficiary.

Option B

A partial interest fails the whole-remaining-interest requirement.

Option C

Appointment of a guardian does not make the unborn person a living transferee under section 5.

Option D

The arrangement fails the requirement of a prior interest created by the same transfer.

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