Perpetuities (perpetuity period) meaning

Private Client England & Wales glossary A Abatement When, after settling the deceased’s funeral costs, debts and liabilities, the remaining estate cannot satisfy all legacies in full, the gifts are reduced accordingly, unless the Will shows a different intention. In a solvent estate, the order for reduction appears in Part II of Schedule 1 to the Administration of Estates Act 1925. Refer to Practice Note: Payment of legacies. Accruals basis Where income is taxed on an accruals basis, it is attributed to a given tax year by reference to the number of days within that year during which the activity giving rise to the liability accrued. See Practice Note: What is the basis of income tax?. Accumulation and maintenance (A&M) trust A form of non‑interest in possession trust designed to benefit children and young people up to 25, which received favourable inheritance tax treatment between 1975 and 2006. See Practice Note: Accumulation and maintenance trusts—IHT [Archived]. Accredited Legal Representative (ALR) ...

Drafting — Perpetuities and Accumulations Act 2009 Under the Perpetuities and Accumulations Act 2009 (PAA 2009), the rule against perpetuities no longer applies to easements created on or after 6 April 2010. As a result, a drafter does not need to set a perpetuity period within which the right must vest (i.e. take effect). Even so, many grantors still include a specified vesting period to secure the comfort of knowing the easement will cease to be relevant if it does not vest within that timeframe. Any conditions within the grant itself that regulate how the easement is exercised will, of course, remain in force. Due diligence — future easements The perpetuity rule continues to govern easements granted before 6 April 2010. The rule causes no difficulty where the subject matter of the right exists at the date of grant. For instance, a right to use existing service media is unaffected. By contrast, if a grant is made to use service media that may be installed in the...

The rules relating to perpetuities and accumulations Originating in common law and the Perpetuities and Accumulations Act 1964 (PAA 1964), the doctrines on perpetuities and accumulations grew increasingly outdated and problematic. In 1989 the Law Commission began consulting on reform. This process produced a 1993 paper exposing flaws in the framework, followed by a 1998 final Report with a draft bill, which in turn led to the Perpetuities and Accumulations Act 2009 (PAA 2009). PAA 2009 duly took effect on 6 April 2010. Its purpose is to streamline and modernise the law, introducing revisions to both the rule against perpetuities (sometimes called the rule against remoteness of vesting) and the rule curbing excessive accumulations. Practitioners must nevertheless consider the former regime where it still operates in particular situations and remain mindful of its continuing application in certain cases. Fundamentally, the rule against perpetuities prevents property from being controlled for an unlimited period...