38. Equitable interests generally.

(iii)     Equitable Interests

38.     Equitable interests generally.

Equitable estates and interests1 of all descriptions, including contingent remainders of equitable estates2, are subject to the rule against perpetuities. The mode in which the estate or interest is created, whether by devise, gift inter vivos or contract, is immaterial3.

Discretionary trusts must be so limited that the discretion is not exercisable outside the perpetuity period4. In relation to instruments to which the Perpetuities and Accumulations Act 1964 applies5, and in relation to instruments to which the Perpetuities and Accumulations Act 2009 applies6,a disposition7, interest or estate may, however, be saved by