The Vancouver independent. (Vancouver, W.T. [Wash.]) 1875-1910, 1882-09-28
What Rich Men Can DO-And VIII
Taey Cannot.

the income of their estates during two or
three generations, with the view of amss-
ing enormous sums by the accumulation
of interest. This they try to work out IN
various ways by their wills, and to ac-
complish various purposes-personal,
charitable, private and public. One of
the beuueets in Franklin's will was some
what Of this nature, and was intended
to work for the general advantage of the
people of Philadelphia. The result in
that instance has not come up to the cal
culation, and il Franklin could revisit
the glimpses of the moon long enough to
take look at the accounts he would be
surprised and greatly disappointed ut
the meagre growth of his bequest, where
he expected q very large amount OF
money. That is one kind of trust for
accumulation" and upon such the law
looks with Indulgence, because the OBJ
ject is benevolent and for the public
good. But there are "trusts for accumu
lation'' that the law is jealous of, and we
propose brief discussion of the subject.
It was an old and we'll settled rule in
equity that testator might direct that
the title to real estate or personally
should not vest in any one until the
period of twenty-one years after the
death of any person or persons who were
living ut the time of the testator's death;
and it resulted from this rule that rents
and incomes might be directed to accu-
mu ate for the same length of time-as
lawyers say, for "a life or lives in being,
and twenty-one years thereafter. Such
being the law, an English merchant
named Thellusson, who died in 1897,
IL h,xnlva1 thnuoun1
pounds sterling, or about 50 500, 900 of
our money, provided by his will that the
rents and income of his real and personal
estate should accumulate in the HAMS OF
the trustees till the death of all his chill
dren and grandchildren who were living
when he died, and should then be
divided among the male heirs of his sons.
In this way the property was tied up for
two generations, and it was calculated
that if the period of calculation should
extend, as was possible, to one hundred
years, the property would amount to
fifty millions of pounds. Thellusson's
will was disputed. but was declared valid
by the Court of Chancery and the House
of Lords.
1t was felt, however, that the heaping
together of an enormous fortune in the
hands of trustee, while the income was
withdrawn from the useful purposes of
commerce, should be beyond the power
of ambitious and selfish men. Accord
ingly, an act was passed in the thirty
ninth year of the reign of George Ill,
known as the "Thellusson Act" BY
this Act all 'trust3 for accumulation"
are forbidden except
a. During the settlers life, If the
accumulation be directed by deed;
(2.) For twenty-one years from the
testator's death;
(3) During the minority OF any per-
sou living at his death, or who would
afterwards become entitled to the estate.
Similar acts are in force in most of
our States. The Pennsylvania statute
was passed in 1853. 1t provides that ac-
emulation may be directed only for
the life of the settler or for twenty-one
years after the death of the testator, ad-
ding, chat ia to say, only after such de-
cease during the minority OF
any person or persons, who would if OF
full age be entitled unto the rents, issues,
interests, and profits SO directed to accu-
m ulate."
1t will be noticed that our statute is
more stringent than the Thellusson act.
The time during which q bequest may
accumulate is limited by the explanatory
clause to the minority of the person who
will take the property. A testator is not
allowed to direct accumulation during
AS minority for the benefit of or AS
children. When the statute came to be
construed by the courts this was pointed
out. A testator left directions that the
balance of his income, after an allowance
to his minor child, should be invested
and accumulate during her minority
for the ben, fit of of his estate, and after
the minor attained full age the income
only of the estate should be paid to her
for life, the principal to go after her
death to her xppointees or children. After
the income had so accumulated for some
years the question arose ~ to the minors
right to the principal Of the accumula.
tons when she should come OF age. The
supreme court, after quoting the act,
said: 1T does seem to MS that the true
interpretation Of this act Is not hard to
reach. In the frst place, it allows
only in favor OF one
class Of persona, Who are to be possessed
of two qualifications: l. They must be
minors: 2. They must be such persons
who. il not minors when the deet u will
goes into effect. will be entitled to take
the rents and profits from which the ac-
cumulations are 10 arise" The minor
was. therefore, declared entitled to the
accumulations upon her arriving at age.
In recent case testatrix directed that
q portion of her estate should be ac