Trusts – to extend or not to extend
Published Date: 30 Jun 2026
The rule against perpetuities requires that a trust must vest within the perpetuity period applicable to the trust. A trust typically vests on its vesting date as determined by the common law, statute or the terms of the trust deed. A trust does not end when it vests, but rather the trust relationship changes. This change in the trust relationship and the transfer of assets out of the vested trust can result in many adverse legal, commercial, tax and duty consequences. Since the vesting of a trust can be costly, it is important to understand the applicable jurisdiction to the trust and the trust’s perpetuity period. Getting the jurisdiction or perpetuity period wrong can have disastrous consequences. Delaying the inevitable vesting of a trust by extending its vesting date is often the most commercial and tax-effective solution.
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- Published By: Dung Lam CTA, Hugo Southcott
- Published On:30 Jun 2026
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