The correct answer is 4: neither A nor B. Under the Transfer of Property Act, 1882, a vested interest is not defeated by the death of either the transferor or the transferee. Once a vested interest is created, it becomes a fixed and transferable right, even if the transferee dies before taking possession. The interest passes to the legal heirs of the transferee. Similarly, the death of the transferor does not affect the validity of the vested interest. This makes vested interest secure and independent of the life of the parties involved.