p.1
Transfer for Public Benefit
What does Section 13 of the TPA establish regarding transfers for the benefit of unborn persons?
It establishes that a transfer can only occur between living persons and lays down the mechanism for transferring interests to unborn persons.
p.1
Transfer for Public Benefit
If S is not born until after the death of C, what happens to the property?
If S is not born until after C's death, the property will revert back to the transferor or his heirs.
p.1
Transfer for Public Benefit
What does 'unborn' refer to in the context of Section 13?
It refers to both those who might have been conceived but not yet born and those who have not yet been conceived.
p.1
Transfer for Public Benefit
What happens if the unborn person is born during the lifetime of the life holder?
The title in the property immediately vests in the unborn person, but possession is postponed until the death of the life holder.
p.2
Vesting of Interest in Unborn Persons
What happens to the property when the last life estate in favor of C ends?
The property reverts back to A or his heirs.
p.3
Transfer to a Class of Unborn Persons
What does Section 15 state regarding property transfer for a class of unborn persons?
If an interest fails for some in the class, it does not affect the whole class.
p.1
Transfer for Public Benefit
What happens to the property if S (the unborn) dies before the life holder C?
The property goes to the heirs of S after the death of C because S had a vested interest upon being born.
p.2
Transfer to a Class of Unborn Persons
How can an interest be created in favor of an unborn according to section 13?
A life interest must first be created in favor of someone else, followed by an absolute interest for the unborn.
p.2
Rule Against Perpetuity
What does the Rule Against Perpetuity (Section 14) state regarding the vesting of interest for the unborn?
Vesting cannot be postponed beyond the lifetime of those with a life interest plus the minority of the unborn (before 18 years).
p.4
Transfer for Public Benefit
What happens when a transfer includes both charitable and non-charitable objects?
The transfer remains valid for charitable purposes but not for non-charitable ones.
p.1
Transfer for Public Benefit
What is the mechanism for transferring property to unborn persons as per Section 13?
First, a life estate must be created in favor of a living person, followed by an absolute interest in favor of the unborn.
p.2
Exceptions to the Rule Against Perpetuity
What happens if a property transfer stipulates that the unborn child attains interest at age 30?
The vesting is void as it violates the Rule Against Perpetuity.
p.4
Directions for Accumulation of Income
What is the purpose of the direction for accumulation under Section 17?
To direct the transferee not to spend income from the property but to accumulate it for a specific or non-specific purpose.
p.4
Transfer for Public Benefit
What does Section 18 state regarding transfers for public benefit?
Rules regarding perpetuity and accumulation do not apply if the transfer is for public benefit.
p.2
Vesting of Interest in Unborn Persons
What occurs when the unborn comes into existence in relation to property transfer?
A vested interest is created for the unborn, even if possession occurs later.
p.3
Rule Against Perpetuity
What happens if there is a slight possibility that the perpetuity period may be exceeded at the time of making a deed?
The transaction would be void.
p.2
Transfer When Prior Interest Fails
What is the consequence if the first child, who is the unborn beneficiary, dies before turning 18?
The property would revert back to A or his heirs.
p.3
Exceptions to the Rule Against Perpetuity
Provide an example of a case where the Rule Against Perpetuity does not apply.
Ram Baran Prasad v. Ram Mohit Hazra regarding a pre-emption clause.
p.4
Exceptions to the Rule Against Perpetuity
Is accumulation for the benefit of children subject to Section 17?
No, it is not subject to Section 17 restrictions.
p.1
Transfer for Public Benefit
In the example provided, who possesses the property first?
B possesses the property for his life first.
p.2
Creation of Prior and Absolute Interest for Unborn Persons
What is required for a valid transfer under section 13?
An absolute interest must be created in favor of the unborn, and they must exist before the life estate ends.
p.4
Limitations on Accumulation of Income
What is the maximum accumulation period specified in Section 17?
The life of the transferor or 18 years from the date of transfer, whichever is longer.
p.3
Transfer to a Class of Unborn Persons
In the example given, why is the transfer in favor of granddaughters considered void?
It is hit by the rule of perpetuity under Section 14.
p.1
Transfer for Public Benefit
What occurs if the unborn person is not born during the lifetime of the life holder?
The property is enjoyed by the life holder during their lifetime and then reverts back to the transferor or their heirs.
p.2
Vesting of Interest in Unborn Persons
What kind of interest does the unborn have between the death of the life estate holder and their majority?
A contingent interest that becomes vested upon attaining majority.
p.3
Rule Against Perpetuity
What is the primary consideration when making a deed?
The language of the deed, not actual events.
p.4
Transfer When Prior Interest Fails
What does the term 'after or upon failure of prior interest' signify?
It means that a subsequent transfer takes effect if a void transfer fails.
p.3
Exceptions to the Rule Against Perpetuity
Which case law illustrates that the Rule Against Perpetuity does not apply to leases?
R. Kempraj v. Burton Son and Co.
p.4
Limitations on Accumulation of Income
What happens if the accumulation direction exceeds the specified period?
It is considered void and can be ignored by the transferee.
p.3
Transfer When Prior Interest Fails
What does Section 16 state about transfers intended to take effect on failure of prior interests?
They also fail if the specific transfer is void due to violations of Sections 13 and 14.
p.3
Transfer When Prior Interest Fails
In the example provided, why does the transfer for C fail?
It is intended to take effect upon a prior transfer that is void.
p.4
Exceptions to the Rule Against Perpetuity
Can the income be accumulated for the payment of a debt?
Yes, accumulation for payment of debt is an exception and can exceed the time limit set by Section 17.
