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Get Answers to all your Questions
Read the following passage and answer the question.
Transfer of property" means an act by which a living person conveys property, in present or in future, to one or more other living persons, or to himself and one or more than one living person. It is clear from this definition that for a conveyance to be covered under the Transfer of Property Act, it must be from one living person to another living person, ie who are both alive at the time of conveyance
However, an exception to this provision is section 13 which facilitates the transfer of immovable property in favour of an unborn person. A person who does not have any current existence but has a specific reference to one and who may be born in the future is considered to be an unborn child or person. Thus, a child who has been conceived as well as a child who has not been conceived at the time of conveyance are both covered under the term. Section 13 of the Transfer of Property Act, 1882 provides that when for the transfer of property, an interest therein is created for the benefit of an unborn person at the date of the transfer, a prior interest is to be created in respect of the same transfer, and the interest created for the benefit of such person shall not take effect. unless it extends to the whole of the remaining interest of the person transferring the property in the property to be transferred Other than this provision, property cannot directly be transferred to an unborn person.
Thus, in order to transfer property for the benefit of an unborn person on the date of the transfer, it is imperative
1. The property must first be transferred by the mechanism of trusts in favour of some person living other than the unborn person on the date of transfer, and
2. The interest ultimately created in favour of the unborn person must not be limited by time or otherwise. If the persons for whose benefit the transfer is to take effect are living, any number of successive life interests can be created in their favour. However, in the case of such a person for whose benefit the interest is being acted is an unborn person, the transfer must be absolute and there should be no further transfer him to other people.
Question :- A the owner of the property, wishes to transfer his property in favour of his grandson He transferred it to the grandson and provided that till the grandson is bornbom, B, A's son shall hold the property as a trustee and after B8's death, his wife shall be the trustee However he also amo provides that the grandson will hold the property only for his life and it will pass to A's second son after the grandson's death. Will the interest created in favour of the unborn grandson take effect?
No, as the property is transferred through trust to more than one person
No, as the interest created in favour of the unborn child is not absolute
Yes, as property is transferred in trusts in favour of living persons other than the unborn person
Yes, as any number of successive life interests can be created in favour of living persons
Answers (1)
The interest created for the benefit of the grandson does not take
effect because the interest ultimately created in the favour of the grandson is limited by time, ie it ends with his life and property goes to the second son of A's thus, according to the second essential of section 13, this is not a valid transfer. So, if there is a transfer to an unborn child, it should be an absolute transfer.
