Perpetuities and Accumulations Act 2009
The question
To ask the Secretary of State for Justice, what assessment his Department has made of the effectiveness of the Perpetuities and Accumulations Act 2009; and whether any measures referred to in the House of Commons Hansard debate of 2 November 2009 (Vol. 498, col. 6) were implemented, withdrawn or remain in effect.
Answered by Sarah Sackman
No systematic concerns have been raised by stakeholders about the operation of the Perpetuities and Accumulations Act 2009, and as such, no assessment has been made of the effectiveness of the Act.
The then Perpetuities and Accumulations Bill was read for a Third Time on 2 November 2009 and passed without amendment. This is a complex and technical area of law. There are several regimes that apply in practice, following the 2009 Act coming into force, which are briefly summarised below.
- The Perpetuities and Accumulations Act 2009 applies to instruments executed on or after 6 April 2010 and sets a statutory perpetuity period of 125 years.
- The Perpetuities and Accumulations Act 1964 applies to instruments executed on or after 16 July 1964 and before 6 April 2010, allowing for a statutory period of up to 80 years if specified in the trust document.
- The Law of Property Act 1925 applies to instruments executed on or after 1 January 1926 and before 16 July 1964, reiterating the common law perpetuity period (lives in being plus 21 years) while also introducing relevant statutory modifications.
In all other cases, only the common law rules apply.
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