Perpetuities and Accumulations Act

Section 1. Short title Section This Act may be cited as the Perpetuities and Accumulations Act.

Section 2. Interpretation Section 2(1) In this Act, except where the context otherwise requires— "charitable disposition" means a disposition in favour of a charity ("an institution or body of persons established for the purpose of benefiting the public or a section thereof whether by way of the relief of poverty or distress or in the advancement of religion, knowledge, commerce, health, safety or other objects beneficial to mankind") ; "charity" means an institution or body of persons established for the purpose of benefiting the public or a section thereof whether by way of the relief of poverty or distress or in the advancement of religion, knowledge, commerce, health, safety or other objects beneficial to mankind. "in being" means living or en ventre sa mère ; "power of appointment" includes a discretionary power to transfer a beneficial interest in property without the furnishing of valuable consideration. Section 2(2) For the purposes of this Act a disposition contained in a will shall be deemed to be made at the death of the testator and a disposition contained in any other instrument shall be deemed to be made at the date of the instrument. Section 2(3)(a) when the person t...

Section 3. Condition restraining alienation void Section 3(1) Where a disposition is subject to a condition or limitation absolutely restraining the beneficiary or any person claiming under him from charging or disposing of his interest in the property that condition or limitation shall be void. Section 3(2) This section shall not apply to charitable dispositions.

Section 4. Restriction repugnant to interest void Section 4(1) Where a disposition creates an interest absolutely in favour of a person but the terms of the disposition direct that the interest shall be applied or enjoyed by him in a particular manner, he may receive and dispose of the interest as if there were no such direction. Section 4(2) This section shall not affect the right to restrain, for the beneficial enjoyment of one piece of immovable property, the enjoyment of another piece of immovable property, or to compel the enjoyment thereof in a particular manner.

Section 5. Duration of perpetuity period Section 5(1)(a) where the instrument by which the disposition is made so provides, shall be such number of years not exceeding eighty as is specified in that behalf in the instrument; which failing Section 5(1)(b) shall be a specified life or specified lives in being ("living or;") and eighteen years thereafter; which failing Section 5(1)(c) shall be eighteen years. Section 5(2) Subsection (1) (a) shall not have effect where the disposition is made in exercise of a special power of appointment ("a discretionary power to transfer a beneficial interest in property without the furnishing of valuable consideration") , but where a period is specified under that subsection in the instrument creating such a power the period shall apply in relation to a disposition under the power as it applies in relation to the power itself.

Section 6. Remoteness of vesting Section Subject to the provisions of this Act, no disposition shall be valid which must postpone the vesting of the interest disposed of beyond the perpetuity period.

Section 7. Presumptions and evidence as to future parenthood Section 7(1)(a) subject to paragraph (b), it shall be presumed that a male can have a child at the age of fourteen years or over, but not under that age, and that a female can have a child at the age of twelve years or over, but not under that age or over the age of fifty-five years; but Section 7(1)(b) in the case of a living person evidence may be given to show that he or she will or will not be able to have a child at the time in question. Section 7(2) Where any such question is decided by treating a person as unable to have a child at a particular time, and he or she does so, the High Court may make such order as it thinks fit for placing the persons interested in the property comprised in the disposition, so far as may be just, in the position they would have held if the question had not been so decided. Section 7(3) Subject to subsection (2), where any such question is decided in relation to a disposition by treating a person as able or unable to have a child at a particular time then he or she shall be so treated for the purpose of any question which may arise under section 6 in relation to the same disposition in...

Section 8. Uncertainty as to remoteness Section 8(1) Where, apart from the provisions of this section and sections 10 and 11 , a disposition might not vest the interest disposed of within the perpetuity period, the disposition shall be treated, until such time (if any) as it becomes established that the vesting must occur, if at all, beyond the perpetuity period, as if the disposition were not subject to section 6 , and its becoming so established shall not affect the validity of anything previously done in relation to the interest disposed of by way of advancement, application of interim income or otherwise. Section 8(2) Where, apart from the provisions referred to in subsection (1), a disposition consists of the conferring of a general power of appointment ("a discretionary power to transfer a beneficial interest in property without the furnishing of valuable consideration") which might not become exercisable within the perpetuity period, the disposition shall be treated, until such time (if any) as it becomes established that the power will not be exercisable within the perpetuity period, as if the disposition were not subject to section 6 . Section 8(3) Where a disposition cons...

Section 9. Ascertainment of livesin being Section 9(1) Where section 8 applies and the duration of the perpetuity period is not determined by paragraph (a) or (c) of section 5 (1), it shall be determined in accordance with this section. Section 9(2) Where persons falling within subsection (3) are individuals in being ("living or;") and ascertainable at the commencement of the perpetuity period, the duration of the period shall be determined by reference to their lives and no others, but so that the lives of any description of persons falling within paragraph (b) or (c) of that subsection shall be disregarded if the number of persons of that description is such as to render it impracticable to ascertain the date of death of the survivor. Section 9(3)(a) a person expressly selected by the instrument creating the disposition to be a life in being ("living or;") ; Section 9(3)(b) in the case of a disposition to a class of persons, any member or potential member of that class; Section 9(3)(b)(i) in the case of a disposition to a class of persons, any member or potential member of that class; Section 9(3)(b)(ii) in the case of an individual disposition to a person taking only on certain...

Section 10. Reduction of age and exclusion of class members to avoid perpetuity Section 10(1)(a) that the disposition would, apart from this section, be void for remoteness; but Section 10(1)(b) that it would not have been void if the specified age had been eighteen years, the disposition shall be treated for all purposes as if, instead of being limited by reference to the age in fact specified, it had been limited by reference to the age nearest to that age which would, if specified instead, have prevented the disposition from being so void. Section 10(2)(a) the reference in subsection (1)(b) to the specified age shall be construed as a reference to all the specified ages; and Section 10(2)(b) subsection (1) shall operate to reduce each such age so far as is necessary to save the disposition from being void for remoteness. Section 10(3) Where the inclusion of any persons, being potential members of a class or unborn persons who at birth would become members or potential members of the class, prevents the foregoing provisions of this section from operating to save a disposition from being void for remoteness, those persons shall thenceforth be deemed for all purposes of the disposi...

Section 11. Condition relating to death of surviving spouse Section Where a disposition is limited by reference to the time of death of the survivor of a person in being ("living or;") at the time of the commencement of the perpetuity period and any spouse of that person, and that time has not arrived at the end of the perpetuity period, the disposition shall be treated for all purposes, where to do so would save it from being void for remoteness, as if it had instead been limited by reference to the time immediately before the end of that period.

Section 12. Saving and acceleration of expectant interests Section A disposition shall not be treated as void for remoteness by reason only that the interest disposed of is ulterior to and dependent upon an interest under a disposition which is void, and the vesting of an interest shall not be prevented from being accelerated on the failure of a prior interest by reason only that the failure arises because of remoteness.

Section 13. Powers of appointment Section in the instrument creating the power it is expressed to be exercisable by one person only; and

Section 14. Validity of powers of appointment Section 14(1) In the case of a general power of appointment ("a discretionary power to transfer a beneficial interest in property without the furnishing of valuable consideration") the perpetuity period shall commence at the time of the exercise of the power. Section 14(2) In the case of a special power of appointment ("a discretionary power to transfer a beneficial interest in property without the furnishing of valuable consideration") the perpetuity period shall commence at the date the disposition creating the special power takes effect.

Section 15. Administrative powers of trustees Section 15(1) Section 6 shall not operate to invalidate a power conferred on trustees or other persons to sell, lease, exchange or otherwise dispose of property for full consideration, or to do any other act in the administration (as opposed to the distribution) of property, and shall not prevent the payment to trustees or other persons of reasonable remuneration for their services. Section 15(2) Subsection (1) shall apply for the purpose of enabling a power to be exercised at any time after the commencement of the Act, notwithstanding that the power is conferred by an instrument which took effect before that commencement.

Section 16. Options relating to land Section 16(1)(a) the option is exercisable only by the lessee or his successors in title; and Section 16(1)(b) it ceases to be exercisable at or before the expiration of one year following the determination of the lease. Section 16(2) Subsection (1) shall apply in relation to an agreement for a lease as it applies in relation to a lease, and "lessee" shall be construed accordingly. Section 16(3) In the case of any other disposition consisting of the conferring of an option to acquire for valuable consideration an interest in land, the perpetuity period shall be twenty-one years, and section 5 shall not apply: Provided that this subsection shall not apply to a right of pre-emption conferred on a public or local authority in respect of land used or to be used for religious purposes where the right becomes exercisable only if the land ceases to be used for such purposes.

Section 17. Recovery of annual sums charged on immovable property Section Section 6 shall not apply to powers or remedies for recovering or compelling the payment of an annual sum charged on immovable property or on the income thereof or on any other annual sum which is itself so charged, whether conferred by law or created by any instrument relating to that annual sum.

Section 18. Avoidance of contractual and other rights in cases of remoteness Section Where a disposition inter vivos would fall to be treated as void for remoteness if the rights and duties thereunder were capable of transmission to persons other than the original parties and had been so transmitted, it shall be treated as void as between the person by whom it was made and the person to whom or in whose favour it was made or any successor of his, and no remedy shall lie in contract or otherwise for giving effect to it or making restitution for its lack of effect.

Section 19. Accumulation of income Section 19(1) Subject to section 16 of this Act, the terms of any instrument or a trust may direct or authorize the accumulation of all or part of the income of such property for a period not exceeding the intended duration of the trust. Section 19(2) Subject to special and general power of maintenance and advancement or as predicted by the terms of the trust or as otherwise provided, income which is not accumulated shall be distributed. Section 19(3) At all times, any income that is not accumulated shall be distributed to the intended beneficiaries. [Act No. 10 of 2022 , s. 3.]

Section 20. Accumulation during minority Section When accumulations of surplus income are lawfully made during a minority, the period for which the accumulations are made shall not (whether the trust was created or the accumulations were made before or after the commencement of this Act) be taken into account in determining the periods for which accumulations are permitted to be made by section 19 , and accordingly an express trust for accumulation for any other permitted period shall not be deemed to have been invalidated or become invalid by reason of accumulation also having been made as aforesaid during the minority.

Section 21. Restriction on accumulation for the purchase of immovable property Section 21(1) No person may dispose of property so that the income thereof shall be wholly or partially accumulated for the purchase of immovable property only, for a longer period than the duration of the minority or respective minorities of any person or persons who, under the limitations of the instrument directing the accumulation, would for the time being, if of full age, be entitled to the income so directed to be accumulated. Section 21(2) This section shall not, nor shall the enactments which it replaces, apply to accumulations to be held as capital money for the purpose of the Trusts of Land Act (Cap. 290), whether or not the accumulations are primarily liable to be laid out in the purchase of immovable property.

Section 22. Termination of accumulations Section 22(1) The foregoing sections of this part shall not affect the right of a beneficiary of full age and capacity who has an absolute vested and indefeasible interest in property at any time to require the transfer of the property to him and the termination of an accumulation. Section 22(2) Section 4 shall apply to any question under this section.

Section 23. Act not to apply to pension and similar funds Section the provision of superannuating allowances on retirement to persons employed in the undertaking or combination of undertakings in connection with which the fund is established; or

Section 24. Validity of dispositions in favour of charities Section 24(1) No charitable disposition ("a disposition in favour of a charity;") shall be invalid by reason of non-compliance with the provisions of section 6 ; but such a disposition shall, unless it is to take effect on the failure or determination of a previous charitable disposition, take effect, if at all, within the perpetuity period. Section 24(2) Section 19 shall apply to the income of a charity.

Section 25. Act to bind Government Section This Act shall bind the Government.