The Perpetuities and Accumulations Act 2009, explained by Malcolm Skinner
With the advent of the Perpetuities and Accumulations Act 2009 there will be a collective sigh of relief from students .
Or will there be?
While the Act may have received Royal Assent, it still has to be implemented which is not likely to happen until after the middle of 2010 so we will have to continue with the old law for the time being.
The old law is contained in common law and in the Perpetuities and Accumulations Act 1964 (PAA 1964) and provides that a future interest must vest (to prevent it being perpetually inalienable) at common law, within a life or lives in being at the date of the disposition plus 21 years and under the Act, within a period of up to 80 years as specified or 21 years in the case of an option in respect of land.
In respect of the accumulation of income the permitted periods are:
l the lifetime of the grantor/settler.
l 21 years from their death.
l the
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