Perpetuities and Accumulations Act

This Act may be cited as the Perpetuities and Accumulations Act.

Section 2 provides definitions (for example, "charitable disposition", "charity", "in being", "power of appointment") and rules on when dispositions and wills are treated as made and the scope of application of the Act.

A condition or limitation that absolutely prevents the beneficiary (or anyone claiming under them) from charging or disposing of their interest in the property is void.

If a disposition gives a person an absolute interest but directs it be enjoyed in a particular way, that person may receive and dispose of the interest as if the direction did not exist.

If a disposition would be void for remoteness because of specified ages or class members, treat the disposition as if ages were reduced to the nearest non-voiding age and exclude certain potential or unborn class members to avoid the disposition being void.

If a disposition is limited by reference to the death of the survivor of a living person and spouse and that time falls after the perpetuity period, treat the disposition as if it were limited to the time immediately before the end of the perpetuity period to avoid it being void for remoteness.

A disposition is not void for remoteness solely because it depends on an interest under a void disposition, and vesting may be accelerated on failure of a prior interest even if that failure is due to remoteness.

Where the instrument creating a power states that the power is exercisable by one person only.

For a general power of appointment the perpetuity period begins when the power is exercised; for a special power of appointment it begins when the disposition creating the special power takes effect.

Section 6 does not invalidate trustees' powers to deal with property or stop payment of reasonable remuneration; Subsection (1) applies to allow those powers to be exercised after the Act's commencement even if conferred earlier.

An option to acquire an interest in land may be exercised only by the lessee or his successors in title; it ceases to be exercisable at or before one year after the lease is determined. Subsection (1) applies equally to agreements for a lease; "lessee" is to be construed accordingly. For other dispositions by option for valuable consideration the perpetuity period is twenty-one years, but that subsection does not apply to pre-emption rights held by public or local authorities for land used for religious purposes where exercisable only if use ceases.

Section 6 does not apply to powers or remedies for recovering or compelling the payment of an annual sum charged on immovable property or on its income, or to any other annual sum similarly charged.

A disposition inter vivos that would be void for remoteness is to be treated as void between the person who made it and the person in whose favour it was made (or that person's successor), and no remedy lies in contract or otherwise to give it effect or to obtain restitution.

Section 5 sets the duration of the perpetuity period: if the instrument specifies a period it must not exceed eighty years; otherwise it is a specified life or lives in being plus eighteen years; if neither applies it is eighteen years.

A disposition is invalid if it postpones vesting of the disposed interest beyond the perpetuity period, subject to the provisions of this Act.

Section 7 creates rebuttable presumptions about the ages at which males and females can have children, allows evidence for living persons to show fertility or infertility, permits the High Court to make orders when a person is treated as unable to have a child and such decision is incorrect, and defines "having a child" to include begetting, giving birth, adoption, legitimation or other means (with subsection (1)(b) excepted).

Where a disposition might not vest or a power might not be exercisable within the perpetuity period, the disposition or power is to be treated, until it is established otherwise, as if not subject to section 6; such treatment does not affect prior dealings and the disposition is void only if a right is not fully exercised within the perpetuity period.

If persons listed in subsection (3) are living and ascertainable at the commencement of the perpetuity period, the perpetuity period is measured by their lives, but certain classes of persons in subsection (3) may be disregarded if their number makes it impracticable to ascertain the survivor's date of death.

The terms of an instrument or a trust may direct or authorize accumulating all or part of the income of the property, subject to section 16 and only for a period not exceeding the intended duration of the trust.

If surplus income is lawfully accumulated during a beneficiary's minority, that period of accumulation is not counted when determining permitted accumulation periods under section 19, and a trust for accumulation for another permitted period is not invalidated by such minority accumulations.

No person may dispose of property so that income is accumulated for purchase of immovable property for longer than the duration of the beneficiaries' minorities.

A beneficiary of full age and capacity with an absolute vested and indefeasible interest in property may require transfer of the property and end an accumulation.

The Act does not apply to pension and similar funds.

Charitable dispositions are not invalid solely because they do not comply with section 6, but unless they take effect on the failure or determination of a previous charitable disposition they must, if they take effect at all, do so within the perpetuity period; Section 19 applies to the income of a charity.

This Act shall bind the Government.