W2 - Rule Against Alienability

Question 1

Rule against Inalienability

Answer 1

Non-charitable purpose trusts must either:

1) Allow the trustees to spend all the trust capital at once on the given purpose (ie ending the trust at any time); OR
2) Be limited in duration to 21 years (or “for as long as the law allows) - Re Hooper

Question 2

Rule against Remoteness of Vesting

Answer 2

A contingent interest must become a vested interest:

1) If before 1 April 2006 = by 80 years (perpetuity period)
2) If on/after 1 April 2006 = by 125 years (perpetuity period)