CHAPTER II OF TRANSFERS OF PROPERTY BY ACT OF PARTIES · (A) Transfer of Property, whether moveable or immoveable

Section 17: Direction for accumulation

(1) Where the terms of a transfer of property direct that the income arising from the property shall be accumulated either wholly or in part during a period longer than—

(a) the life of the transferor, or

(b) a period of eighteen years from the date of the transfer,

such direction shall, save as hereinafter provided, be void to the extent to which the period during which the accumulation is directed exceeds the longer of the aforesaid periods, and at the end of such last-mentioned period the property and the income thereof shall be disposed of as if the period during which the accumulation has been directed to be made had elapsed.

(2) This section shall not affect any direction for accumulation for the purpose of—

(i) the payment of the debts of the transferor or any other person taking any interest under the transfer, or

(ii) the provision of portions for children or remoter issue of the transferor or of any other person taking any interest under the transfer, or

(iii) the preservation or maintenance of the property transferred;

and such direction may be made accordingly.

Questions on this section

3 questions in 10 of our papers cite Section 17. Try these from the free papers:

1. Under Section 17 of the Transfer of Property Act, 1882, a direction to accumulate the income from transferred property is void to the extent that the period of accumulation exceeds the longer of:
2. Section 17 of the Transfer of Property Act, 1882 does not affect a direction for accumulation of income made for which of the following purposes? 1. The purchase of further land to be added to the property transferred 2. The payment of the debts of the transferor or of any other person taking an interest under the transfer 3. The provision of portions for children or remoter issue of the transferor or of any other person taking an interest under the transfer 4. The preservation or maintenance of the property transferred Select the correct answer using the codes given below:

Practise questions on Transfer of Property Act