The Perpetuities and Accumulations Act

The Perpetuities and Accumulations Act, C.C.S.M. c. P33 bilingual version (HTML) HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows: Definitions 1 In this Act "Accumulations Act" means the Act of Great Britain being chapter 98 of 39 and 40 George III, known as The Accumulations Act , 1800 or The Thellusson Act ; (« Loi sur la capitalisation ») "modern rule against perpetuities" includes the operation of the rule with regard to remoteness of vesting and perpetual duration and with regard to testamentary executory interests in personalty; (« règle moderne interdisant les dispositions à titre perpétuel ») "property" includes real property, personal property and mixed real and personal property; (« biens ») "successive legal interest" includes (a) the first or particular interest, (b) any following interest, whether the following interest is future, vested or contingent or is an executory interest, or a determinable or defeasible interest, or any interest over thereupon, and (c) a general or special power of appointment, but does not include the interests of landlords and tenants within the meaning of The Landlord and Tenant Act or The Residential Tenancies Act ; (« droit successif fondé sur la common law ») "trustee" includes any person who is a trustee for the purposes of The Trustee Act . (« fiduciaire ») S.M. 1990-91, c. 11, s. 205 . Accumulations Act repealed 2 The Accumulations Act is repealed in so far as it is part of the law of Manitoba. Rules against perpetuities cease to apply 3 The rules of law against perpetuities, sometimes known as the rule in Whitby and Mitchell and the modern rule against perpetuities, are no longer the law of Manitoba. Effect of successive legal interests 4(1) Successive legal interests, whether valid or invalid at common law or as executory interests, take effect in equity behind a trust, except that any successive legal interest which would not be valid as an equitable interest behind a trust is invalid for all purposes. Trustees of successive legal interests 4(2) The trustees of the property subject to successive legal interests are the beneficiaries who, at the time the trust takes effect, (a) are of the age of majority; (b) are not persons for whom the court may, under clause 9(1)⁠(a) of The Trustee Act , appoint new trustees in substitution; and (c) are willing to act. Vesting of trust property 4(3) Upon the trust for successive legal interests taking effect, the trust property vests in the trustees. Selection of trustees 4(4) Where there are more than four beneficiaries who qualify as trustees under subsection (2), the first four set out in the instrument or words of creation creating the successive legal interests, or the first four by seniority of age where the beneficiaries are described as a class, are the trustees. Where no qualified trustee 4(5) Where there is no beneficiary who qualifies as trustee under subsection (2), an application may be made under The Trustee Act to the Court of King's Bench for an order appointing an appropriate person, including a trust company, as trustee of the property subject to the successive legal interests. Trustees for existing interests 4(6) Where successive legal interests were created prior to October 1, 1983, the trustees of the property subject to the successive legal interests are those beneficiaries who are surviving on that date and are qualified under subsection (2). Where more than four trustees 4(7) Where, in respect of successive legal interests created prior to October 1, 1983, there are more than four beneficiaries who qualify for trusteeship under subsection (6), the first four set out in the instrument or words creating the successive legal interests or the first four by seniority of age where the beneficiaries are described as a class, are the trustees. Where no trustees on existing interests 4(8) Where on October 1, 1983, there are no beneficiaries who qualify under subsection (6) as trustees of property subject to successive legal interests, subsection (5) applies. Application of Act 5(1) Except as provided in this section, this Act applies to all interests in property, including successive legal interests, created before, or on or after October 1, 1983, and to all trusts whether taking effect before or on or after that date. Previous interests and acts sustained 5(2) Where, prior to October 1, 1983, (a) a court held an interest or a purported interest in property, including successive legal interests, to be void for breach of the rule in Whitby and Mitchell or the modern rule against perpetuities; or (b) the period permitted for the vesting of an interest, or for any duration of accumulation, has terminated and any act or step has been taken as a consequence of that termination; or (c) any act or step was taken in reliance upon the applicability of the rule in Whitby and Mitchell, or the modern rule against perpetuities or The Accumulations Act , including the transfer of property to any person consequent upon any voidity or termination; the law as it was prior to the passing of this Act applies to that purported interest, act or step, as the case may be, as if this Act had not been passed. Previous judgments sustained 5(3) Where, prior to October 1, 1983, any judgment or order of a court was given or made, or any act was done arising out of the existence of any successive legal interests, and the judgment, order or act was in accordance with the law as it was prior to the passing of this Act, if the interest affected was a legal interest the judgment, order or act continues to have full effect as if this Act had not been passed. Crown bound 6 The Crown is bound by this Act.