Perpetuities Act Repeals this rule. Does not apply in BC. Also repealed in MB and SK Rule Against Accumulations Prohibits allowing income in trust to Repealed everywhere but ON Accumulation Act UK 1800 accumulate for full perpetuity period. Accumlation Six possible periods of accumulation: Direction to accumulate beyond this Act ON Inter vivos trust: life of the period is “null and void” grantor 21 years from the date of Income that was to be accumulated making an inter vivos disposition pursuant to the trust beyond the The duration of the minorities of permitted periods is to go to the person persons living or conceived at who would have been entitled to the the date of making an inter vivos income if there had been so such disposition provision in the trust for accumulation 21 years years from the death of of income beyond the permitted period. the grantor, settlor or testator. Duration of the minorities of any persons living or conceived at the death of the grantor, settlor or testator. Duration of the minorities of persons who, under the instrument directing the accumulations, would if of full age, be entitled to the income directed to be accumulated. McIntyre 1997 Fund held on trust to provide monthly Held: the amount in excess of the On Gen Div allowance for sister for life with power accumulation period (i.e. so of encroachment. Residue of trust to be accumulation occurring after 21 years of divided between charities. Also testator’s death) was NOT failed legacy provision saying any legacy not valid was b/c testator didn’t deal with it. to go to residue as well. Therefore, next of kin intestacy entitled to it. Fund with encroachments more than needed for sister, accumulation occurs.. 21 years from death of testator, sister still alive. Notes Causes problems with trusts set up for disabled persons. Perpetuity Act Accumulation valid as long as gift complies with rule against remoteness of vesting BC s. 25 as modified by statute. Jurisdiction Notes Law that governs the grant is the law of For choses in action such as debt, where the jurisdiction where the property is debtor is located. located—for real and personal. Outcome Chart STEP ONE: Condition OR Determinable Interest? Condition Determinable Interest Continue to step two. STOP: If it is contrary to public policy OR uncertain, gift is VOID If not contrary to public policy and NOT uncertain, gift is valid and subject to the limitation.
Perpetuities Act Repeals this rule. Does not apply in BC. Also repealed in MB and SK Rule Against Accumulation Accumulations Act UK 1800 Prohibits allowing income in trust to accumulate for full perpetuity period. Repealed everywhere but ON Accumlation Act ON Six possible periods of accumulation: Inter vivos trust: life of the grantor 21 years from the date of making an inter vivos disposition The duration of the minorities of persons living or conceived at the date of making an inter vivos disposition 21 years years from the death of the grantor, settlor or testator. Duration of the minorities of any persons living or conceived at the death of the grantor, settlor or testator. Duration of the minorities of persons who, under the instrument directing the accumulations, would if of full age, be entitled to the income directed to be accumulated. Direction to accumulate beyond this period is “null and void” Income that was to be accumulated pursuant to the trust beyond the permitted periods is to go to the person who would have been entitled to the income if there had been so such provision in the trust for accumulation of income beyond the permitted period. McIntyre 1997 On Gen Div Fund held on trust to provide monthly allowance for sister for life with power of encroachment. Residue of trust to be divided between charities. Also provision saying any legacy not valid was to go to residue as well. Fund with encroachments more than needed for sister, accumulation occurs.. 21 years from death of testator, sister still alive. Held: the amount in excess of the accumulation period (i.e. so accumulation occurring after 21 years of testator’s death) was NOT failed legacy b/c testator didn’t deal with it. Therefore, next of kin intestacy entitled to it. Notes Causes problems with trusts set up for disabled persons. Perpetuity Act BC s. 25 Accumulation valid as long as gift complies with rule against remoteness of vesting as modified by statute. Jurisdiction Notes Law that governs the grant is the law of the jurisdiction where the property is located—for real and personal. For choses in action such as debt, where debtor is located. Outcome Chart STEP ONE: Condition OR Determinable Interest? Condition Determinable Interest Continue to step two. STOP: If it is contrary to public policy OR uncertain, gift is VOID If not contrary to public policy and NOT uncertain, gift is valid and subject to the limitation.
197-Thomson-_Law_319_-_Final.docx