Question

Under Section 13 of the Transfer of Property Act, 1882, a transfer of property for the benefit of an unborn person is valid only when:

Q: Answer-Under Section 13 of the Transfer of Property Act, 1882, a transfer of property for the benefit of an...

Section 13 of TPA, 1882 provides that where on a transfer an interest is created for the benefit of a person not in existence at the date of transfer, subject to a prior interest created by the same transfer, the interest for such person shall not take effect unless it extends to the whole of the remaining interest of the transferor in the property. Two conditions are mandatory i there must first be a prior interest created in favour of a living person a direct transfer to an unborn person without a prior living beneficiary is void and ii the unborn person must receive the entire remaining interest of the transferor a partial remainder is not permissible. Under Section 20, once born, the unborn person acquires a vested interest in the property. Section 13 is closely linked with Section 14 rule against perpetuity the prior interest must not extend beyond lives in being plus 18 years, failing which the entire arrangement becomes void.

A The transfer is made to the unborn person directly upon the occurrence of his birth without requiring any intermediate estate in favour of a living person

B The transfer is made by a registered instrument and the unborn person's parents have given prior written consent to the arrangement on his behalf

C The unborn person is expected to be born within six months of the date of the transfer deed as certified by a medical practitioner

D A court-appointed trustee holds the property absolutely for the unborn person from the date of the transfer until his birth and attainment of majority

E A prior interest is created in favour of a person living at the date of transfer, and the interest created for the benefit of the unborn person extends to the whole of the remaining interest of the transferor in the property, with the unborn person acquiring a vested interest on birth under Section 20

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Under Section 13 of the Transfer of Property Act, 1882, a transfer of property for the benefit of an unborn person is valid only when:

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