The Law Commission released today a third issues paper in the review of the law of trusts, Perpetuities and the Revocation and Variation of Trusts: Review of the Law of Trusts Third Issues Paper (IP22, 2011).
Part one of the paper examines the rules that limit the duration of a trust: the common law rule against perpetuities and the Perpetuities Act 1964. The Commission explores the underlying rationale for the rule against perpetuities and asks whether the rule continues to meet a relevant policy need or whether either the mechanism for achieving this policy or the policy basis itself should change. The paper canvasses different options, including retaining the statutory perpetuity rule, adjusting or extending the statutory rule, and abolishing the rule altogether as has been done in a number of overseas jurisdictions.
Part two of the paper looks at the rules that allow trusts to be altered. Trusts may be revoked and varied through various common law, judicial and statutory mechanisms. These rules are examined to ensure that they are clear and workable, and to determine whether reform is needed.
The Commission is seeking comments and submissions on this paper by 24 June 2011.
You can make a submission on this website or please email these to firstname.lastname@example.org post to Law Commission, PO Box 2590, Wellington 6011.
Listen to Radio New Zealand's 'Insight' programme on family trusts, recorded 1st May 2011