Rule Against Accumulations Law and Legal Definition

Rule against Accumulations refer to a principle that prohibits accumulation of income from property beyond the perpetuity period. The direction to accumulate income is valid only if it is confined to the perpetuity period. The perpetuities period under the common law rule is not a fixed term of years. The rule against perpetuities limits the period to at the latest 21 years after the death of the last identifiable individual living at the time the interest was created.

The rule against accumulations does not apply to accumulations for charity. [Quinn v. Peoples Trust & Sav. Co., 223 Ind. 317, 333 (Ind. 1945)]

The rule against accumulations is concerned only with the time of the accumulation and not with the dollar amount. The period during which accumulations are permitted is the same as that allowed under the rule against perpetuities in the absence of a statute providing a different period. [In re Estate of Freeman, 195 Kan. 190 (Kan. 1965)]