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Under the Transfer of Property Act, 1882, what is the effect of a purported transfer directly to a…

Sections 5 and 13 distinguish direct transfers to living persons from creating an interest for an unborn beneficiary. Under section 13, the interest for an unborn…

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Under the Transfer of Property Act, 1882, what is the effect of a purported transfer directly to a person who does not yet exist, with no prior interest created under the transfer?

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Answer and explanation

Correct answer B

Sections 5 and 13 distinguish direct transfers to living persons from creating an interest for an unborn beneficiary. Under section 13, the interest for an unborn beneficiary must follow a prior interest created by the same transfer and extend to the transferor’s entire remaining interest.

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Option A

Section 5 contemplates transfers to living persons, and the arrangement fails as a direct transfer.

Option B

The unborn person cannot take directly under section 5, and the premise does not provide the structure recognized by section 13.

Option C

The direct transfer fails; it does not depend on the transferor electing to set it aside.

Option D

Birth alone does not cure an ineffective direct transfer.

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