The rule against perpetuities

One for the near future: the Perpetuities and Accumulations Bill has passed its third reading in the House of Commons and is now awaiting Royal Assent before its implementation by commencement order on a date still to be fixed.

The new rules will restrict the long-standing rule against perpetuities to trusts, simplifying its operation by introducing a single 125 year perpetuity period - whether specified or not. The rule against perpetuities would only apply in the trust cases listed in section 1 of the Bill, and would therefore cease to apply to future rights over property such as options, rights of pre-emption and future easements. To this extent, it will simplify property drafting, and avoid potential, though rarely encountered, perpetuity traps.