Hi
Reading Ed Chan's newsletter it is stated that his Property Investment Trust now legally has no vestment date. My understanding that a vesting date is required by the common law Rule Against Perpetuities, and further put into statute throughout Australia (see below). In Victoria the relevant legislation is The Perpetuities and Accumulations Act 1968.
I have read elsewhere that the Property Investment Trust is some super secret document that clients and other accountants ane not allowed to see.
Has anyone got any insight as to whether these claims are fair dincum???
Graeme
The situation in other Australian jurisdictions
All Australian jurisdictions except for South Australia have retained the rule against perpetuities, as modified by the relevant state legislation. In Victoria, along with Queensland, Tasmania, Western Australia and the Northern Territory, individuals may select between the common law perpetuity period (‘a life in being plus 21 years’), or a statutory period defined by an upper limit of 80 years. In the ACT and NSW the common law perpetuity period has been abrogated entirely and replaced with a statutory period of 80 years.
Although South Australia has abolished the rule, section 62 of the Law of Property Act 1936 (SA) provides that 80 years after the date of a disposition, parties may apply to the court for orders to vary the disposition so that any remaining unvested interests will immediately vest. Alternatively, if it is clear that interests under a disposition cannot vest or are unlikely to vest within 80 years, section 62 allows the parties to apply to the court to vary the terms of a disposition to ensure that those interest will vest within 80 years. Section 62 of the South Australian Law of Property Act 1936 therefore serves a comparable function to the rule against perpetuities, and effects a similar final result, albeit through a different mechanism.
Reading Ed Chan's newsletter it is stated that his Property Investment Trust now legally has no vestment date. My understanding that a vesting date is required by the common law Rule Against Perpetuities, and further put into statute throughout Australia (see below). In Victoria the relevant legislation is The Perpetuities and Accumulations Act 1968.
I have read elsewhere that the Property Investment Trust is some super secret document that clients and other accountants ane not allowed to see.
Has anyone got any insight as to whether these claims are fair dincum???
Graeme
The situation in other Australian jurisdictions
All Australian jurisdictions except for South Australia have retained the rule against perpetuities, as modified by the relevant state legislation. In Victoria, along with Queensland, Tasmania, Western Australia and the Northern Territory, individuals may select between the common law perpetuity period (‘a life in being plus 21 years’), or a statutory period defined by an upper limit of 80 years. In the ACT and NSW the common law perpetuity period has been abrogated entirely and replaced with a statutory period of 80 years.
Although South Australia has abolished the rule, section 62 of the Law of Property Act 1936 (SA) provides that 80 years after the date of a disposition, parties may apply to the court for orders to vary the disposition so that any remaining unvested interests will immediately vest. Alternatively, if it is clear that interests under a disposition cannot vest or are unlikely to vest within 80 years, section 62 allows the parties to apply to the court to vary the terms of a disposition to ensure that those interest will vest within 80 years. Section 62 of the South Australian Law of Property Act 1936 therefore serves a comparable function to the rule against perpetuities, and effects a similar final result, albeit through a different mechanism.
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