196Determinable interests

196 Determinable interests determinable interest means an interest created by a settlement that is determinable on a contingency provided for in a provision of the settlement.

Law of Property Act 2000 125 subsequent interest, in relation to a determinable interest, means an interest, whether vested or contingent: (a) created by the settlement that created the determinable interest or remaining undisposed of by the settlement or taking effect by way of reverter, resulting trust, residuary gift or otherwise on a possibility arising under the settlement; and (b) in relation to which the determinable interest is a prior interest. (2) The rule against perpetuities applies to render invalid the provision of a settlement providing for determination of a determinable interest in the same manner as the rule would apply to render invalid a condition subsequent in the settlement for defeasance of the determinable interest on the same contingency. (3) If the rule applies to a determinable interest: (a) the determinable interest is not determinable; and (b) a subsequent interest not itself rendered invalid by the rule shall be postponed or defeated to the extent necessary to allow the determinable interest to have effect free from the provision for determination. (4) For the purposes of this section, an interest created by, or a provision in, an appointment or other exercise of a power in a settlement (except a general power of appointment) is not to be treated as an interest created by, or a provision in the settlement. (5) Notwithstanding subsection (2), the rule against perpetuities does not apply to a gift over from one charity to another.