Trusts (Scotland) Act 1961

5 Accumulations of income

(1) The following provisions of this section shall have effect in substitution for the provisions of the [39 & 40 Geo. 3. c. 98.] Accumulations Act, 1800, and that Act is hereby repealed.

(2) No person may by any will, settlement or other disposition dispose of any property in such manner that the income thereof shall be wholly or partially accumulated for any longer period than one of the following, that is to say—

(a) the life of the grantor; or

(b) a term of twenty-one years from the death of the grantor ; or

(c) the duration of the minority or respective minorities of any person or persons living or in utero at the death of the grantor; or

(d) the duration of the minority or respective minorities of any person or persons who, under the terms of the will, settlement or other disposition directing the accumulation, would for the time being, if of full age, be entitled to the income directed to be accumulated.

(3) In every case where any accumulation is directed otherwise than as aforesaid, the direction shall, save as hereinafter provided, be void, and the income directed to be accumulated shall, so long as the same is directed to be accumulated contrary to this section, go to and be received by the person or persons who would have been entitled thereto if such accumulation had not been directed.

(4) For avoidance of doubt it is hereby declared that, in the case of a settlement or other disposition inter vivos, a direction to accumulate income during a period specified in paragraph (d) of subsection (2) of 'this section shall not be void, nor shall the accumulation of the income be contrary to this section, solely by reason of the fact that the period begins during the life of the grantor and ends after his death.

(5) The restrictions imposed by this section apply to wills, settlements and other dispositions made on or after the twenty-eighth day of July, eighteen hundred, but, in the case of wills, only where the testator was living and of testamentary capacity after the end of one year from that date.

(6) In this section " minority " in relation to any person means the period beginning with the birth of the person and ending with his attainment of the age of twenty-one years, and " grantor " includes settlor and, in relation to a will, the testator.