report perpetuities and accumulations

116 Pages·2001·1.27 MB·English

LAW REFORM COMMISSION
NEW SOUTH WALES
REPORT
on
PERPETUITIES AND
ACCUMULATIONS
L.R.C. 26
1976
PREFACE
The Law Reform Commission is constituted by the Law Reform
Commission Act, 1967. The Commissioners are—
.seraeM .D .L .C ecitsuJ rM elbaruonoH ehT :namriahC
Deputy Chairman: Mr R. D. Conacher.
Mr D. Gressier.
Professor J. D. Heydon.
.noissimmoC eht fo rebmeM evitucexE si ttenneB .M .J rM
21-8 ,gnidliuB llesdooG eht ni era noissimmoC eht fo seciffo ehT
eb dluohs noissimmoC eht ot srettel tuB .yendyS ,erauqS yelfihC
addressed to its Secretary, Box 6, G.P.O., Sydney 2001.
This is the twenty-sixth report of the Commission on a reference
.62 .C.R.L si noitatic trohs stI .lareneG yenrottA eht morf
CONTENTS
Page
Preface .. .. .. .. .. .. .. .. .. 2
Contents .. .. .. .. .. .. .. .. 3
Abbreviations .. .. .. .. .. .. .. .. 5
Report—
Part 1. Preliminary .. .. .. .. .. .. 9
2. Introduction .. .. .. .. .. .. 10
3. Outline of draft Bill .. .. .. .. .. 14
4. Application of draft Bill—section 3 .. .. .. 17
5. Interpretation—section 4 .. .. .. .. 19
6. Powers of appointment—section 5 .. .. 21
7. The Crown—section 6 .. .. .. .. .. 24
8. The perpetuity period—section 7 .. .. .. 26
9. Unborn husband or wife—section 8 .. .. .. 30
10. Parenthood: presumptions—section 9 .. 32
11. Wait-and-see—section 10 .. .. .. .. 36
—srebmem ssalc fo noisulcxe dna ega fo noitcudeR .21
section 11 .. .. .. .. .. .. 44
noitces—snoisivorp laidemer fo noitacilppa fo redrO .31
12 .. .. .. .. .. .. . . 51
14. Administrative powers and remuneration of trustees
—sections 13 and 14 .. .. .. .. 51
15. Superannuation funds—section 15 .. .. .. 53
16. Determinable interests—section 16 .. .. .. 54
17. Options—section 17 .. .. .. .. .. 58
16 .. 81 noitces—elbatirahc ton sesoprup rof stsurT .81
46 .. .. .. 91 noitces—stseretni tnednepeD .91
76 .. .. ..02 noitces—emocni fo noitalumuccA .02
22 ,12 snoitces—tnemdnema dna sgnivas ,slaepeR .12
and 23 and the Schedules .. .. .. .. 71
Appendices—
A. The Perpetuities and Accumulations Act 1968 (Victoria) 75
B. A draft Perpetuities Bill, 1976 .. .. .. .. 90
Tables: Cases .. .. .. .. .. .. .. ..107
Statutes .. .. .. .. .. .. ..109
Index .. .. .. .. .. .. .. .. ..113

ABBREVIATIONS
ehT ,mrofeR dna hcraeseR waL fo etutitsnI—)1791( tropeR atreblA
University of Alberta, Report on the Rule against Perpetuities
(August, 1971).
Allan (1963-64)—D. E. Allan "The Rule against Perpetuities Re-
stated" (1963-64) 6 University of Western Australia Law Review
27.
"gnieB ni seviL eht era ohW :seitiutepreP" nallA .E .D—)5691( nallA
.601 weiveR ylretrauQ waL 18 )5691(
Cheshire (1972)—G. C. Cheshire The Modern Law of Real Property
.2791 ,shtrowrettuB .de htll
-agorerP eht fo waL eht no esitaerT A .nuJ ,yttihC .J—)0281( yttihC
.0281 ,noS dna htrowrettuB ,nworC eht fo sevit
,ytuD htaeD fo waL eht fo selpicnirP droF .J .A .H—)1791( droF
The Law Book Co. Ltd, 1971.
Gosse (1966)—Richard Gosse Ontario's Perpetuties Legislation, 1966.
Gray (1942)—J. C. Gray The Rule against Perpetuities, 4th ed. Little,
Brown and Co., 1942.
Hogg and Ford (1969)—P. W. Hogg and H. A. J. Ford "Victorian
Perpetuities Law in a Nutshell" (1969-70) 7 Melbourne Univer-
sity Law Review 155.
,waL hsilgnE fo yrotsiH A htrowsdloH mailliW riS—htrowsdloH
.llewxaM dna teewS ,dtL .oC & neuhteM
Jackson (1967)—David C. Jackson Principles of Property Law, The
Law Book Co. Ltd, 1967.
Lang (1973)—Andrew G. Lang Crown Land in New South Wales,
Butterworths, 1973.
,eettimmoC mrofeR waL—)6591( tropeR eettimmoC mrofeR waL
.81 .dnmC )6591( seitiutepreP tsniaga eluR ehT ,tropeR htruoF
Leach (1952)—W. Barton Leach "Perpetuities: Staying the Slaughter
.53 weiveR ylretrauQ waL 86 )2591( "stneconnI eht fo
nodnoL :mrofeR seitiutepreP" hcaeL notraB .W—)46-3691( hcaeL
Proposes, Perth Disposes" (1963-64) 6 University of Western
.11 weiveR waL ailartsuA
weiveR ylretrauQ waL 87 )2691( "setoN" .M.E.R—)2691( yrrageM
weiveR ylretrauQ waL 97 )3691( "setoN" .M.E.R—)3691( yrrageM
341.
ehT edaW .R .W .H dna yrrageM .E .R—)5791( edaW dna yrrageM
.5791 ,snoS dna snevetS .de ht4 ,ytreporP laeR fo waL
Maudsley (1970)—R. H. Maudsley "Measuring Lives under a System
.753 weiveR ylretrauQ waL 68 )0791( "eeS-dna-tiaW fo
ehT hcaeL notraB .W dna sirroM C .H .J—)2691( hcaeL dna sirroM
Rule against Perpetuities, 2nd ed. Stevens and Sons, 1962.
Morris and Leach (1964)—J. H. C. Morris and W. Barton Leach First
-iutepreP tsniagA eluR ehT' fo noitidE dnoceS eht ot tnemelppuS
ties', Stevens and Sons, 1964.
edaW .R .W .H dna sirroM .C .H .J—)4691( edaW dna sirroM
weiveR ylretrauQ waL 08 )4691( "tsaL ta mrofeR seitiutepreP"
486.
McKay (1965)—K. U. McKay "Perpetuities Act 1964" (1965) 1 New
.484 weiveR waL seitisrevinU dnalaeZ
tropeR noissimmoC mrofeR waL oiratnO—)5691( tropeR oiratnO
No. 1 (February, 1965)
tropeR noissimmoC mrofeR waL oiratnO—)6691( tropeR oiratnO
No. IA "The Perpetuities Act, 1965" (March, 1966).
fo noissimmoC mrofeR waL ehT—)1791( repaP gnikroW dnalsneeuQ
Queensland, Working Paper on "The Law Relating to Perpetuities
and Accumulations" (1971) Q.L.R.C.W. 9.
Simes (1955)—Lewis M. Simes Public Policy and the Dead Hand,
University of Michigan Law School, Ann Arbor, 1955.
-reP tsniaga eluR eht fo mrofeR" semiS .M siweL—)46-3691( semiS
petuities in Western Australia" (1963-64) 6 University of Western
.12 weiveR waL ailartsuA
Victorian Report (1966)—Report of a Sub-Committee of the Law
Reform Committee of the Chief Justice of Victoria on "Reform
.rebmevoN( "snoitalumuccA dna seitiutepreP tsniaga seluR eht fo
1966).
-moC noisiveR waL etutatS eht fo tropeR—)8691( tropeR nairotciV
mittee of Victoria on the Perpetuities and Accumulations Bill
(1968).
s'mahgnittoN droL" ot noitcudortnI ,elaY .C .E .D—)7591( elaY
Chancery Cases" Vol. 73 of the Publications of the Selden Society
(1957).
STATUTES
.atreblA fo 2791 ,tcA seitiutepreP ehT—tcA .blA
.dnalaeZ weN fo 4691 tcA seitiutepreP ehT—tcA .Z.N
Oat. Act—The Perpetuities Act, 1964 of Ontario.
Qld Act—Part XIV of the Property Law Act 1974 (formerly the
.dnalsneeuQ fo )2791 tcA snoitalumuccA dna seitiutepreP
detinU eht fo 4691 tcA snoitalumuccA dna seitiutepreP ehT—tcA .K.U
Kingdom.
.airotciV fo 8691 tcA snoitalumuccA dna seitiutepreP ehT—tcA .tciV
waL eht ylremrof( 9691 ,tcA waL ytreporP eht fo IX traP—tcA .A.W
fo )2691 ,tcA )noisseccuS dna seitiutepreP ,ytreporP( mrofeR
Western Australia.

NOISSIMMOC MROFER WAL
NEW SOUTH WALES
rof lareneG yenrottA ,.A.L.M ,.M.LL ,reklaW .J .F elbaruonoH eht oT
.yendyS ,selaW htuoS weN
TSNIAGA SELUR EHT NO TROPER
SNOITALUMUCCA DNA SEITIUTEPREP
PART 1—PRELIMINARY
-refer ruo rednu troper siht ekam eW .ecnerefer fo smreT 1.1
ence—
To consider the Perpetuities and Accumulations Act 1964
of the United Kingdom and comparable legislation of other
countries for the purpose of recommending whether such legis-
lation, or any part of it, is suitable for adoption in New South
South Wales and, if so, what modifications would be necessary,
.morfereht gnisira srettam latnedicni dna
nI .).K.U( 4691 tcA snoitalumuccA dna seitiutepreP ehT 2.1
segnahc dednemmocer dnalgnE ni eettimmoC mrofeR waL eht ,6591
emos htiW 1.snoitalumucca dna seitiuteprep ot gnitaler wal eht ni
).K.U( 4691 tcA snoitalumuccA dna seitiutepreP eht ,snoitacifidom
gave effect to the Committee's recommendations.
yb desoporp dnik eht fo tcA nA .noitalsigel elbarapmoC 3.1
-suA nretseW ni dessap saw dnalgnE ni eettimmoC mrofeR waL eht
3,dnalaeZ weN ni dessap neeb ecnis evah stcA ekiL 2.2691 ni ailart
Ontario,4 Victoria,5 Queensland8 and Alberta.7 The Acts are not
identical, they differ in some matters of substance and in many matters
of detail. To illustrate a typical legislative approach, we reproduce, in
Appendix A, the Perpetuities and Accumulations Act 1968 of Victoria.
1For a summary of the recommendations, see Law Reform Committee
Report (1956) paragraph 68.
traP won( 2691 ,tcA )noisseccuS dna seitiutepreP ,ytreporP( mrofeR waL 2
.)9691 ,tcA waL ytreporP eht fo IX
3 Perpetuities Act, 1964.
4 Perpetuities Act, 1966.
5 Perpetuities and Accumulations Act 1968.
8 Perpetuities and Accumulations Act 1972 (now Part XIV of the Property
Law Act 1974).
7 Perpetuities Act, 1972.
10
-sigel elbarapmoc dna tcA modgniK detinU eht fo ytilibatiuS 4.1
lation for adoption in New South Wales. To the extent that they do not
rof elbatius era 3.1 dna 2.1 shpargarap ni denoitnem stcA eht ,reffid
adoption in New South Wales. In this report, we recommend that a
,B xidneppA ni tuo tes lliB tfard eht fo tceffe eht ot ,lliB seitiutepreP
be introduced. The draft Bill, though drawing on the provisions of
egnahc ew erehW .erehwesle trapretnuoc on sah ,noitalsigel elbarapmoc
eht yfitsuj ot ,troper siht ni ,yrt ew snoisivorp eseht fo ecnatsbus eht
os od ew snoisivorp emas eht fo mrof eht egnahc ew erehw tuB .egnahc
nrettap eht ot secalp rehto fo noitalsigel eht tpada ot tpmetta na ni ylno
.etatS siht ni noitalsigel fo
eht no repaP gnikroW a hsilbup ton did eW ,noitatlusnoC 5.1
rules against perpetuities and accumulations: the writing on these sub-
jects is already extensive.8 We did, however, talk with some legal
practitioners about the operation of the rules in New South Wales.
The co-operation given to us was generous and we are indebted to the
persons concerned.
rehto fo stcA ot netfo refer ew ,troper siht nI .snoitaiverbbA 6.1
skrow dehsilbup ot dna seicnega mrofer wal rehto fo stroper ot ,secalp
eseht secnatsni tsom nI .snoitalumucca dna seitiuteprep fo wal eht no
-aiverbba eht fo elbat A .mrof detaiverbba na ni edam era secnerefer
tions we use appears on page 5. Also, we speak as though the draft
Perpetuities Bill were an Act. We do so only for the sake of con-
rehtehw yas ot su rof ton si ti taht etaicerppa ew :ytiverb dna ecneinev
ta ton ro trap ni ro yllohw detnemelpmi eb lliw snoitadnemmocer ruo
all. Where we refer to a section number without additional description,
.lliB tfard eht ni noitces a ot refer ew
.troper siht ni ot derrefer era skrow ynaM .stnemgdelwonkcA 7.1
sirroM .C .H .J rD fo esoht fo noitnem laiceps ekam ,revewoh ,tsum eW
and Professor W. Barton Leach, Dr Morris and Professor H. W. R.
Wade, Q.C., Professor D. E. Allan, Dr Richard Gosse and Mr K. U.
.sgnitirw rieht morf ylsuoipoc nward evah eW .yaKcM
PART 2—INTRODUCTION
elur eht ,mrof lacissalc sti nI .seitiuteprep tsniaga elur ehT 1.2
—1snoitisoporp owt ni detats eb yam seitiuteprep tsniaga
si ,lanosrep ro laer ,ytreporp yna ni tseretni erutuf ynA )1(
void from the outset if it may possibly vest2 after the per-
.deripxe sah doirep ytiutep
.5 .p ,snoitaiverbbA fo elbaT eht ,elpmaxe rof ,eeS 8
1Megarry and Wade (1975) pp. 208-209. For the rule generally, see Gray
.182-702 .pp )5791( edaW dna yrrageM dna )2691( hcaeL dna sirroM ,)2491(
2 The word "vest" carries several meanings: for a discussion of them, see
.851-651 .pp )9691( droF dna ggoH