Section 16 — Trusts Act 2019: Maximum duration of trust

16 Maximum duration of trust (1) The maximum duration of a trust is 125 years. (2) The terms of a trust may specify or imply a shorter duration. (3) If the terms of a trust do not specify or imply a duration or a mechanism for or means of determining the date on which the trust property will be finally distributed, the trust continues until the date that is 125 years after the creation of the trust. (4) If the terms of a trust specify or imply a mechanism for or means of determining the date on which the trust property will be finally distributed, the trust continues until the earlier of— (a) the date determined by that mechanism or means; and (b) the date that is 125 years after the creation of the trust. (5) The common law rule known as the rule against perpetuities is abolished. (6) Despite anything in this section, the following trusts may continue indefinitely: (a) a charitable trust: (b) the trusts of a superannuation scheme to which section DC 7 of the Income Tax Act 2007 applies: (c) the trusts of an exempt ESS (within the meaning of section YA 1 of the Income Tax Act 2007): (d) a trust that is created by or under, or is subject to, another enactment that allows the trust to continue indefinitely: (e) a trust that may continue indefinitely under common law or equity. Compare: 1964 No 47 s 19