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Under the general rule in section 17(1) of the Transfer of Property Act, 1882, for how long may a…

Section 17(1) makes a direction to accumulate income void to the extent that it exceeds the longer of the transferor’s lifetime and eighteen years from the transfer. Section…

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Under the general rule in section 17(1) of the Transfer of Property Act, 1882, for how long may a direction to accumulate income from transferred property operate before the excess is void?

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Answer and explanation

Correct answer C

Section 17(1) makes a direction to accumulate income void to the extent that it exceeds the longer of the transferor’s lifetime and eighteen years from the transfer.

Section 17(2) separately excepts certain directions for payment of debts, provision of portions for children or remoter issue, and preservation or maintenance of the property transferred.

Option feedback

Option A

The statute refers to the transferor’s lifetime rather than the transferee’s.

Option B

Eighteen years is one of the statutory periods. The transferor’s lifetime may be longer.

Option C

Section 17(1) gives effect to the direction up to the longer of these two periods, subject to its statutory exceptions.

Option D

Section 17(1) uses the longer of the two periods.

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