Transfer of Property Act Section 13 — Transfer for benefit of unborn person

CHAPTER I PRELIMINARY

General

Summary

If a property transfer creates an interest for someone who is not yet born, and that interest is meant to take effect only after another interest created by the same transfer ends, then the unborn person's interest is invalid unless it covers the entire remaining interest that the original owner had in the property at the time of the transfer. In other words, you cannot give an unborn person only a partial or limited share of what is left after a prior interest ends; the gift to the unborn person must be for the whole of what remains.

Official Text

Where, on a transfer of property, an interest therein is created for the benefit of a person not in existence at the date of the transfer, subject to a prior interest created by the same transfer, 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 transferor in the property. 1. Subs. by Act 20 of 1929, s. 8, for the second paragraph. Illustration A transfers property of which he is the owner to B in trust for A and his intended wife succesively for their lives, and, after the death of the survivor for the eldest son of the intended marriage for life, and after his death for A's second son. The interest so created for the benefit of the eldest son does not take effect, because it does not extend to the whole of A's remaining interest in the property.