CED Overview of the Law

Transcription

1 Perpetuities and Accumulations Notes for I-II.1-3: Introduction; the Rule Against Perpetuities I: Introduction FN1. Waters, Law of Trusts in Canada (1974), pp ; see also Aldercrest Developments Ltd. v. Hunter (1970), [1970] 2 O.R. 562 (Ont. C.A.) (contract for sale of land to be completed "90 days after Planning Board approval"). FN2. Blackburn v. McCallum (1903), 33 S.C.R. 65 (S.C.C.) (general restraint upon alienation of land until 25 years after death of testator); see also Malcolm, Re (1947), [1947] O.W.N. 871 (Ont. H.C.) (restraint upon alienation by devisees except to each other). FN3. Macleary, Re (1875), L.R. 20 Eq. 186 (Eng. Ch.) (condition never to sell out of family); see also Blackburn v. McCallum (1903), 33 S.C.R. 65 (S.C.C.); Hutt v. Hutt (1911), 24 O.L.R. 574 (Ont. C.A.) (provision in will not to sell property to anyone except certain person at specified price); Mountain Estate, Re (1912), 26 O.L.R. 163 (Ont. C.A.) (restraint on sale until tunnel built from Isle of Wight to mainland, if such built within lives of executors or 21 years thereafter); Paul v. Paul (1921), 50 O.L.R. 211 (Ont. C.A.) (conveyance to son with provision not to sell during lifetime of grantor and wife); Rutherford v. Rispin (1926), 59 O.L.R. 506 (Ont. H.C.) (regulations of unincorporated club prohibiting members from alienating their shares in club property without first offering to other members); Noble v. Alley (1950), [1951] S.C.R. 64 (S.C.C.) (covenant that grantee not sell, assign, transfer, lease, rent, etc. to persons of certain races); Pennyman v. McGrogan (1868), 18 U.C.C.P. 132 (Ont. C.A.) (property not to be assigned to anyone except devisee's sons for 20 years after devisee's death); Casner, Re (1883), 6 O.R. 282 (Ont. Ch.) (devisees in fee simple not to convey or dispose of lands in any manner whatsoever); Watson v. Woods (1887), 14 O.R. 48 (Ont. Ch.) (restriction against sale or devise of life estate, directing that it be held for life tenant's heirs); Heddlestone v. Heddlestone (1888), 15 O.R. 280 (Ont. H.C.) (devisees not to alienate except by will to their lawful heirs); O'Sullivan v. Phelan (1889), 17 O.R. 730 (Ont. Ch.) (condition that "neither of my said nephews is to be at liberty to sell his half of the said property to anyone, except to persons of the name O'Sullivan, in my own family"); Meyers v. Hamilton Provident & Loan Co. (1890), 19 O.R. 358 (Ont. C.P.) (land not to be sold until after devisee's death and until youngest child reaching age 21); Shanacy v. Quinlan (1897), 28 O.R. 372 (Ont. Q.B.) (no devisee to sell or mortgage devised lands). II.1.(a): Definitions at Common Law

2 FN1. Ferguson v. Ferguson (1878), 2 S.C.R. 497 (S.C.C.) (devise of land to first great-grandson descending from testator's son through male line); see also Meyers v. Hamilton Provident & Loan Co. (1890), 19 O.R. 358 (Ont. C.P.); Miller, Re (1938), [1938] O.W.N. 118 (Ont. H.C.) (remainder of estate to be invested for 80 years after death of testator; corpus then to be distributed among testator's issue); Albery, Re (1964), 42 D.L.R. (2d) 201 (Ont. H.C.) (trust for "any other worthy object or purpose"); Roberts, Re (1978), 82 D.L.R. (3d) 591 (Ont. H.C.) (bequest of annuity to persons living at testator's death for 20 years or until death of last survivor, whichever earlier; income thereafter to be distributed among testator's grandchildren for 21 years, after which capital to be distributed among surviving grandchildren); MacMurray, Re (1949), 1949 CarswellOnt 305 (Ont. H.C.); Fletcher, Re (1953), 9 W.W.R. (N.S.) 566 (B.C. S.C.); Fownes, Re (1974), 10 N.B.R. (2d) 226 (N.B. Q.B.); Laurin v. Iron Ore Co. (1977), 82 D.L.R. (3d) 634 (Nfld. T.D.) (purported option limiting time of vesting to 21 years after death of longest-living descendant then living of Queen; no violation of rule); Brown, Re (1919), [1920] 1 W.W.R. 264 (Sask. C.A.); Crichton, Re (1913), 4 W.W.R (Man. K.B.) (future interest beginning within proper period valid); Halliday, Re (1935), [1935] 1 W.W.R. 360 (Man. K.B.) (vested interests not subject to rule); Townsend, Re (1969), 69 W.W.R. 630 (Alta. S.C.) (application to distributive clause in will; early vesting); Malczewski v. Sansai Securities Ltd. (1974), [1975] 1 W.W.R. 462 (B.C. S.C.) (trust fund set up under statute offending rule). FN2. Short Estate, Re (1914), 7 O.W.N. 525 (Ont. H.C.) (devise of income from corpus to church office for 90 years; corpus thereafter to be paid to missionary society of church). FN3. Crichton, Re (1913), 4 W.W.R (Man. K.B.); Aldercrest Developments Ltd. v. Hunter (1970), [1970] 2 O.R. 562 (Ont. C.A.). FN4. Miller, Re (1938), [1938] O.W.N. 118 (Ont. H.C.); see also Meyers v. Hamilton Provident & Loan Co. (1890), 19 O.R. 358 (Ont. C.P.). FN5. White Trust, Re (1952), [1952] 4 D.L.R. 711 (Ont. H.C.) (income of trust fund devised to widow for life, then to testator's brother's children; on their death, corpus of fund to their children). FN6. Meyers v. Hamilton Provident & Loan Co. (1890), 19 O.R. 358 (Ont. C.P.), at 368, per MacMahon J. FN7. MacMurray, Re (1949), 1949 CarswellOnt 305 (Ont. H.C.) (devise of residue of estate for education of testator's nephew and future nephews "if in the opinion of my said executor their parents are too poor to give them a proper education"; "nephew" construed as"grand-nephew"); see also Bérubé v. Babin (1992), 127 N.B.R. (2d) 210 (N.B. Q.B.); affirmed (1993), 135 N.B.R. (2d) 316 (N.B. C.A.) (rule violated by provision in agreement for sale of land that bulk of land to be reconveyed on certain date or whenever water and sewer installation completed). FN8. MacMurray, Re (1949), 1949 CarswellOnt 305 (Ont. H.C.), at 282, per Wells J.; see also Roberts, Re (1978), 82 D.L.R. (3d) 591 (Ont. H.C.). FN9. Ferguson v. Ferguson (1878), 2 S.C.R. 497 (S.C.C.).

3 FN10. Ferguson v. Ferguson (1878), 2 S.C.R. 497 (S.C.C.). FN11. Ferguson v. Ferguson (1878), 2 S.C.R. 497 (S.C.C.). FN12. Fasken, Re (1959), 19 D.L.R. (2d) 182 (Ont. C.A.) (testamentary settlement of income of fund to sister; income or capital then to her "issue"); Gilpin, Re, [1954] Ch. 1 (infertility of woman due to surgery); Gaite, Re, [1949] 1 All E.R. 459 (8-year-old child). II.1.(b): Definitions Under Perpetuities Legislation FN1. Perpetuities Act, R.S.A. 2000, c. P-5, s. 25 (instruments taking effect after July 1, 1973); Perpetuity Act, R.S.B.C. 1996, c. 358, s. 2 (instruments taking effect after December 31, 1978); Perpetuities Act, R.S.O. 1990, c. P.9, s. 19 (instruments taking effect after September 6, 1966). FN2. Perpetuities Act, R.S.A. 2000, c. P-5, ss. 3, 4; Perpetuity Act, R.S.B.C. 1996, c. 358, ss. 8 [am. 1998, c. 37, s. 29], 9; Perpetuities Act, R.S.O. 1990, c. P.9, ss. 3, 4; see also Hay v. Edmonton Savings & Credit Union Ltd. (1989), 103 A.R. 123 (Alta. Master) (purchasers of land agreeing to subdivide 20 acres and convey back to vendor; agreement not stating period within which vendor's interest required to vest; vendor registering caveat against title; credit union acquiring title through subsequent foreclosure and applying to discharge caveat; application dismissed; statute creating presumption in favour of validity until actual events establishing that interest incapable of vesting during perpetuity period). FN3. Perpetuities Act, R.S.A. 2000, c. P-5, s. 13(1); Perpetuity Act, R.S.B.C. 1996, c. 358, s. 17(1), Perpetuities Act, R.S.O. 1990, c. P.9, s. 10(1). FN4. Perpetuities Act, R.S.A. 2000, c. P-5, s. 13(2); Perpetuity Act, R.S.B.C. 1996, c. 358, s. 17(2); Perpetuities Act, R.S.O. 1990, c. P.9, s. 10(2). FN5. Perpetuities Act, R.S.A. 2000, c. P-5, s. 5(1)(b), Perpetuities Act, R.S.O. 1990, c. P.9, s. 6(3); Roberts v. Hanson (1981), 15 Alta. L.R. (2d) 11 (Alta. C.A.); leave to appeal refused (1981), 29 A.R. 450 (note) (S.C.C.) (option to purchase being contained in lease renewable for four successive five-year terms; lessee not "life in being"; perpetuity period 21 years). FN6. Perpetuity Act, R.S.B.C. 1996, c. 358, s. 10(1)(b). FN7. Perpetuities Act, R.S.A. 2000, c. P-5, s. 5(1); Perpetuity Act, R.S.B.C. 1996, c. 358, s. 10(1); Perpetuities Act, R.S.O. 1990, c. P.9, s. 6(1). FN8. Perpetuities Act, R.S.A. 2000, c. P-5, s. 1(c) "in being"; Perpetuity Act, R.S.B.C. 1996, c. 358, s. 1 "in being"; Perpetuities Act, R.S.O. 1990, c. P.9, s. 1 "in being". FN9. Perpetuities Act, R.S.A. 2000, c. P-5, s. 5(2) [am. 2002, c. A-4.5, s. 62(2)]; Perpetuity Act, R.S.B.C. 1996, c. 358, s. 10(2); Perpetuities Act, R.S.O. 1990, c. P.9, s. 6(2).

4 FN10. Perpetuities Act, R.S.A. 2000, c. P-5, s. 5(1); Perpetuity Act, R.S.B.C. 1996, c. 358, s. 10(1). FN11. Perpetuities Act, R.S.A. 2000, c. P-5, s. 9 [am. 2010, c. 16, s. 1(47)]; Perpetuity Act, R.S.B.C. 1996, c. 358, s. 14; Perpetuities Act, R.S.O. 1990, c. P.9, s. 7. FN12. Perpetuities Act, R.S.A. 2000, c. P-5, s. 9(1)(a)(i); Perpetuity Act, R.S.B.C. 1996, c. 358, s. 14(1)(a); Perpetuities Act, R.S.O. 1990, c. P.9, s. 7(1)(a)(i). FN13. Perpetuities Act, R.S.A. 2000, c. P-5, s. 9(1)(a)(ii); Perpetuity Act, R.S.B.C. 1996, c. 358, s. 14(1)(b); Perpetuities Act, R.S.O. 1990, c. P.9, s. 7(1)(a)(ii). FN14. Perpetuities Act, R.S.A. 2000, c. P-5, s. 9(1)(b); Perpetuity Act, R.S.B.C. 1996, c. 358, s. 14(2); Perpetuities Act, R.S.O. 1990, c. P.9, s. 7(1)(b). FN15. Perpetuities Act, R.S.A. 2000, c. P-5, s. 9(2); Perpetuity Act, R.S.B.C. 1996, c. 358, s. 14(3); Perpetuities Act, R.S.O. 1990, c. P.9, s. 7(2). FN16. Perpetuities Act, R.S.A. 2000, c. P-5, s. 9(3); Perpetuity Act, R.S.B.C. 1996, c. 358, s. 14(4); Perpetuities Act, R.S.O. 1990, c. P.9, s. 7(3). FN17. Perpetuities Act, R.S.A. 2000, c. P-5, s. 9(4) [am. 2010, c. 16, s. 1(47)]; Perpetuity Act, R.S.B.C. 1996, c. 358, s. 14(5); Perpetuities Act, R.S.O. 1990, c. P.9, s. 7(4). FN18. Perpetuities Act, R.S.A. 2000, c. P-5, s. 6(1); Perpetuity Act, R.S.B.C. 1996, c. 358, s. 11(1); Perpetuities Act, R.S.O. 1990, c. P.9, s. 8(1). FN19. Perpetuities Act, R.S.A. 2000, c. P-5, s. 6(2); Perpetuity Act, R.S.B.C. 1996, c. 358, s. 11(2). FN20. Perpetuities Act, R.S.A. 2000, c. P-5, s. 5(2)(e) [am. 2002, c. A-4.5, s. 62(2)]; Perpetuity Act, R.S.B.C. 1996, c. 358, s. 10(2)(e); Perpetuities Act, R.S.O. 1990, c. P.9, s. 9(1) [am. 1999, c. 6, s. 54(1); 2005, c. 5, s. 57(1)]. FN21. Perpetuities and Accumulations Act, R.S.M. 1987, c. P33, C.C.S.M., c. P33, s. 3; see also Perpetuities and Accumulations Act, R.S.M. 1987, c. P33, C.C.S.M., c. P33, s. 5 (date of application of Act). FN22. Perpetuities and Accumulations Act, R.S.M. 1987, c. P33, C.C.S.M., c. P33, s. 4(1) II.2: Origin of Rule FN1. Ferguson v. Ferguson (1878), 2 S.C.R. 497 (S.C.C.) (covenant that grantee, heirs and assigns would reconvey property at any time upon request); Lord Dungannon v. Smith (1846), 8 E.R (U.K. H.L.); Cadell v. Palmer (1833), 6 E.R. 956 (U.K. H.L.); Jardine v. Wilson (1872), 32 U.C.Q.B. 498 (Ont. Q.B.) (devise of land to D., but if D. dying without heirs, then to his widow for life; then to rest of testator's children); Iler v. Elliott (1872), 32 U.C.Q.B. 434 (U.C. Q.B.).

5 II.3: Object of Rule FN1. Mann, Crossman & Paulin Ltd. v. Registrar of the Land Registry (1917), [1918] 1 Ch. 202 (Eng. Ch.).