TSEM6239 - Legal background to trusts & estates: accumulation limits

In England and Wales Section 164 Law of Property Act 1925, as extended by Section 13 Perpetuities and Accumulations Act 1964 essentially limits a person creating a trust to selecting one of the following periods for accumulation

• the lifetime of the settlor
• 21 years from the death of the settlor/testator
• 21 years from the making of the gift
• the respective minorities of the beneficiaries

The position is the same in Scotland by virtue of Section 5 Trusts (Scotland) Act 1961, as extended by Section 6 Law Reform (Miscellaneous Provisions) (Scotland) Act 1966.

Northern Ireland has no similar legislation dealing with accumulations. But Section 32 Trustee Act (Northern Ireland) 1958 does not permit accumulation during the infancy (minority) of a beneficiary.