Sections 13 and 14 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Sections 13 and 14 limit how far a transfer can reach into the future. As per the text of the Act consulted, section 13 says an interest for a person not yet in existence takes effect only if it covers the whole of what remains of the transferor's interest, and section 14 bars an interest that would take effect after a fixed outer period.
Section 13: where a transfer creates an interest for a person not in existence at the date of transfer, subject to a prior interest created by the same transfer, that interest does not take effect unless it extends to the whole of the remaining interest of the transferor in the property. Section 14: no transfer can create an interest that is to take effect after the lifetime of one or more persons living at the date of the transfer, and the minority of some person who is in existence at the end of that period, and to whom, on reaching full age, the interest is to belong.
Section 13: an interest for a person not yet born
Section 13 applies when two things are present together:
- a transfer creates an interest for the benefit of a person not in existence at the date of the transfer; and
- that interest comes after a prior interest created by the same transfer.
In that case the unborn person's interest "shall not take effect, unless it extends to the whole of the remaining interest of the transferor in the property".
In plain words: if you want to give something to a person who is not yet born, and you first give a prior interest to someone else, then the unborn person must receive everything you have left. A smaller slice, such as a life interest only, does not work.
The Act's illustration
The illustration in the text runs as follows. A transfers property of which he is the owner to B in trust for A and his intended wife successively 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 for the eldest son does not take effect, because it does not extend to the whole of A's remaining interest in the property.
The reason is simple. The eldest son is given only a life interest. A's remaining interest is more than that, because the property goes on to the second son after the eldest son's death. So the eldest son's interest fails.
Present-day example. Manoj Bhatia transfers a house to his living son Kabir for life, and after Kabir's death to Kabir's child, who is not yet born, absolutely. The unborn child's interest takes the whole of what remains of Manoj's interest, so section 13 does not stand in the way. If instead Manoj gave the unborn child only a life interest and then someone else the rest, the unborn child's interest would fail under section 13.
The text of section 13 is quoted only to this extent; whether the rule is met in a particular document depends on its exact wording. A legal consultation before executing such a document is sensible.
Section 14: the rule against perpetuity
Section 14 reads: "No transfer of property can operate to create an interest which is to take effect after the life-time of one or more persons living at the date of such transfer, and the minority of some person who shall be in existence at the expiration of that period, and to whom, if he attains full age, the interest created is to belong."
The rule sets an outer limit on how long the vesting of an interest can be put off. Break the limit into its parts:
| Part | Meaning |
|---|---|
| Lives in being | The lifetime of one or more persons living at the date of the transfer |
| Plus a minority | The minority of a person who will be in existence at the end of that lifetime |
| The person in minority | Someone to whom the interest is to belong if he reaches full age |
| Result | An interest that is to take effect after that combined period cannot be created |
So the longest permitted delay is: the life or lives of persons alive on the date of transfer, followed by the minority of a person then in existence who will take the interest on reaching full age.
Example. Anita Sharma transfers a plot to her living daughter Radhika for life, and after Radhika's death to Radhika's child on reaching full age. If that child is in existence when Radhika dies, the interest takes effect within the limit. But if Anita says the plot goes to "whoever is the eldest member of my family twenty-five years after Radhika's death", the interest is to take effect after the lifetime of a living person plus a further fixed period that is not the minority of someone then in existence. A clause like that has to be tested against section 14 with great care.
The section speaks about interests that are to take effect after the period. What happens to the rest of the transfer when one interest is struck down is dealt with in the next sections: section 15 (a class of persons, some of whom come under sections 13 and 14) and section 16 (an interest intended to take effect after a prior interest that fails). Our article on sections 15 to 18, class transfers, accumulation of income and transfers for public benefit explains them. Section 18 also says the restrictions in sections 14, 16 and 17 do not apply to a transfer for the benefit of the public in the advancement of religion, knowledge, commerce, health, safety or any other object beneficial to mankind.
Why people get caught
Family arrangements often try to look ahead several generations. A typical clause says that the property goes to the transferor's son for life, then to the son's children for life, then to their children, and so on. Such clauses can be caught by section 13, section 14 or both. Common slips are:
- giving the unborn person only a limited interest after a prior interest;
- postponing the vesting by a fixed number of years that is not tied to a life and a minority;
- naming a class of unborn persons without checking the effect of the rules on the whole class.
Before drafting, list who is alive on the date of transfer, who may be born later, and when each interest is to take effect. If an interest would take effect later than the permitted outer limit, restructure it. Testing a family plan against the rules before the deed is signed costs far less than finding the problem afterwards.
For a transfer that is to be held by a trustee for a future beneficiary, the Indian Trusts Act, 1882 applies in its own right; see our article on how a trust is created under section 6 of the Indian Trusts Act, 1882, and check that Act's current text.
Need help planning a transfer that looks to the future?
If you are drafting a deed that gives property to children or grandchildren who are not yet born, it is worth having the wording checked against sections 13 and 14 before it is signed. Talk to us through a legal consultation.
Key takeaways
- Section 13: an interest for a person not in existence, coming after a prior interest in the same transfer, takes effect only if it extends to the whole of the transferor's remaining interest.
- Section 14: no interest can be created to take effect after the lifetime of one or more persons living at the date of transfer and the minority of a person then in existence who will take on reaching full age.
- A life interest for an unborn person after a prior interest does not satisfy section 13.
- Sections 15, 16 and 18 deal with classes, failed prior interests and transfers for public benefit.
- Test any multi-generation clause against both sections before signing.
- Later amendments and State changes should be checked.
Read next
- Sections 10 to 12: conditions restraining alienation and enjoyment
- Sections 15 to 18: class transfers, accumulation of income and public benefit
- Sections 19 and 20: vested interest and unborn person's vested interest
- Introduction to the Transfer of Property Act, 1882
Disclaimer: Based on a publisher's print of the Transfer of Property Act, 1882 showing amendments up to the Transfer of Property (Amendment) Act, 2002 (3 of 2003), as consulted on 2 October 2026. State amendments, later amendments, stamp duty and registration charges are not covered and should be checked. This article is general information, not legal advice; check the official text before acting.