Perpetuities and Accumulations Act 1992 (Tas)

Perpetuities and Accumulations Act 1992

An Act to effect reforms in the rule of law commonly known as the rule against perpetuities, to abolish the rule of law commonly known as the rule against accumulations and to repeal the Accumulations Act 1800 and for other purposes [Royal Assent 7 August 1992]

Whereas –

(a) it is a rule of the common law in force in Tasmania in relation to dispositions of property by will or by settlement that no interest is valid unless it must vest, if at all, not later than 21 years after some life in being at the creation of the interest; and (b) that rule of law is commonly known as the rule against perpetuities or the rule against remoteness of vesting; and (c) the application of the rule against perpetuities has been found to be harsh and capricious and to have defeated the reasonable intentions of testators, settlors and other persons dealing with property; and (d) it is considered that the law should continue to exercise a measure of control over dispositions of property, whether by will, by settlement or otherwise, to ensure that there are reasonable time limits for the vesting of future interests but that it is desirable to modify the rigidity of the application of the rule against perpetuities; and (e) it is expedient to effect other reforms in the law relating to accumulations of property and otherwise:

Be it therefore enacted by His Excellency the Governor of Tasmania, by and with the advice and consent of the Legislative Council and House of Assembly, in Parliament assembled, as follows:

PART 1 - Preliminary

1. Short title This Act may be cited as the Perpetuities and Accumulations Act 1992 .

2. Commencement This Act commences on a day to be fixed by proclamation.

3. Interpretation (1) In this Act, unless the contrary intention appears – court includes a person acting judicially; disposition includes the conferring or exercise of a power of appointment or any other power or authority to dispose of an interest in, or a right over, property and any other disposition of an interest in, or a right over, property; instrument includes a will and any other instrument, whether testamentary or not, by which a power of appointment, whether general or special is exercised, but does not include an Act of Parliament; perpetuity period, in the application of the rule against perpetuities to a disposition, means – (a) a period determined in accordance with this Act as the perpetuity period applicable to that disposition; or (b) if there is no period so determined, the period applicable to that disposition by virtue of the rule against perpetuities; power of appointment includes a discretionary power to transfer, grant or create a beneficial interest in property without valuable consideration; property includes any interest in real or personal property and any thing in action; spouse includes the person with whom a person is, or was at the time of his or her death, in a significant relationship, within the meaning of the Relationships Act 2003 ; the Supreme Court includes a judge of that Court; will includes a codicil to a will. (2) For the purposes of the application of the rule against perpetuities – (a) a disposition contained in a will is taken to be made at the death of the testator; and (b) a person is taken to be – (i) a member of a class if all the conditions identifying a member of the class are satisfied in the case of that person; and (ii) a potential member of a class if only one or some of those conditions are satisfied in the case of that person but there is a possibility that the remainder of those conditions will in time be satisfied; and (c) a person en ventre sa mère but subsequently born alive is treated as a person who was alive at the relevant time.