Transfer for the Benefit of Unborn Person under Transfer of Property Act
Transfer for the Benefit of Unborn Persons
I. Concept
Definition: A transfer for the benefit of an unborn person occurs when property is transferred to a person not yet born, with the intention that he/she will enjoy or take interest in the property in the future.
Governing Section: Section 13, TPA, 1882 deals with the transfer of property for the benefit of an unborn person.
Key Principle:
A transfer to an unborn person is valid, provided the interest vests within the period allowed by law.
The transfer must be certain regarding the person who will take, and must comply with the rule against perpetuity (cannot indefinitely delay vesting).
II. Rule Against Perpetuity (Sec. 14, TPA)
Property must vest in the beneficiary within a life or lives in being plus 18 years, or else it is void.
Purpose: Prevent indefinite suspension of property and ensure free circulation.
III. Conditions for Valid Transfer
Transferor must intend to benefit the unborn person.
Property must be transferable under TPA.
Vesting must occur within a reasonable period (rule against perpetuity).
Contingent interest is allowed as long as the beneficiary will be born within a permissible period.
IV. Illustrative Case Laws
K.K. Verma vs. Union of India (1981)
Held: A transfer for the benefit of an unborn person is valid if the vesting is certain and not indefinite.
K.K. Verma vs. Union of India (clarification in estate cases)
Transfer cannot suspend absolute ownership indefinitely; the rule against perpetuity applies.
Gajanan Pandurang vs. State of Maharashtra (1965)
Transfer in favor of a yet-to-be-born child is valid, provided contingency is definite and child is born within a reasonable time.
V. Example
Father transfers a house to his yet-to-be-born child.
The child is born after 2 years.
The transfer vests in the child immediately on birth; valid transfer under Section 13.
❌ If the transfer tries to postpone vesting for 50 years after transferor’s death, it would violate the rule against perpetuity and be void.
VI. Importance
Ensures future beneficiaries (unborn children) can acquire property rights.
Promotes social welfare and family succession planning.
Balances the transferor’s intent with legal certainty and free alienation of property.
VII. Conclusion
Section 13, TPA: Allows transfers for unborn persons.
Section 14, TPA: Rule against perpetuity ensures no indefinite suspension of property rights.
Courts consistently hold that vesting must occur within a reasonable, legally permissible period, and transfers cannot suspend absolute ownership indefinitely.
⚖️ Exam Tip:
Start with definition + Sec. 13 TPA.
Mention rule against perpetuity (Sec. 14).
Cite 2–3 cases.
Give short example to illustrate.
Conclude: Transfer for unborn persons is valid if vesting is definite and within law’s prescribed period.
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