- accumulation period
England, WalesThe period during which the trustees of a trust may accumulate the trust income (that is, add it to the trust capital, rather than pay it out to or for the benefit of the beneficiaries (beneficiary) (see accumulated income)). After the accumulation period has ended, the trustees are obliged to distribute trust income to, or for the benefit of, the beneficiaries.The statutory rule against excessive accumulations applies to trusts that took effect, and wills executed, before 6 April 2010. For these trusts, the accumulation period must be one of six periods set out in:• Section 164 of the Law of Property Act 1925.• Section 13 of the Perpetuities and Accumulations Act 1964.The Perpetuities and Accumulations Act 2009 abolished these statutory restrictions for trusts taking effect, and wills executed, on or after 6 April 2010, except for charitable trusts. However, the settlors of non-charitable trusts can still choose to include restrictions on accumulation in the trust document. For more information, see Practice note, Perpetuities and Accumulations Act 2009: how the law has changed: Changes to the rule against excessive accumulations (www.practicallaw.com/6-386-6091).
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.
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