Trusts: Rule Against Accumulations

Rule Against Accumulations
In most states a private trust may accumulate income only for the period of the Rule Against Perpetuities, unless a different period is set by statute. While the Rule Against Perpetuities is concerned with restraint on alienation of property as a result of the creation of uncertain and remote future interests, the Rule Against Accumulations is concerned with the unreasonable tying up of wealth as the result of unreasonable accumulation requirements. A gift which vests within the period ofthe Rule Against Perpetuities will be valid although a provision as to the same gift requiring accumulation beyond the period of the Rule will be stricken.