ACCUMULATION, in law, the continuous adding of the interest of a fund to the principal, for the benefit of some person or persons in the future. Previous to 1800 this accumulation of property was not forbidden by English law, provided the period during which it was to accumulate did not exceed that forbidden by the law against perpetuities; viz., the period of a life or lives in being, and 21 years afterwards. In 1800, how ever, the law was amended in consequence of the eccentric will of Peter Thellusson (1737-97), an English merchant, who di rected the income of his property, consisting of real estate of the annual value of about .£5,000 and personal estate amounting to over L600,000, to be accumulated during the lives of his children, grandchildren and great-grandchildren, living at the time of his death, and the survivor of them. The bequest was held valid (Thellusson v. Woodford, 1798, 4 Vesey, To prevent such a disposition of property in the future, the Accumulations Act, 1800 (known also as the "Thellusson Act") was passed, by which (as altered and re-enacted by the Law of Property Act, 1925) it was enacted that no property should be accumulated for any longer term than either (I) the life of the grantor or settlor; or (2) the term of 21 years from his death; or (3) during the minority of any person living or en ventre de sa mere at the time of his death; or (4) during the minority of any person who, if of full age, would be entitled to the income directed to be accumulated. The act does not extend to any provision for payment of the debts of the grantor or of any other person, nor to any provision for raising portions for the children or remoter issue of the settlor, or any person interested under the settlement, nor to any direction touching the produce of timber or wood. It does not apply to property in Ireland. The act has been amended by the Accumulations Act, 1892, which forbids accumulations for the purpose of the purchase of land for any longer period than during the minority of any person or persons who, if of full age, would be entitled to receive the income. The Accumulations Act, 1800, was applied to heritable property in Scotland by the Entail Amendment Act, 1848, and the saving clause as to provision for payment of debts was dis applied to Scotland by the Entail (Scotland) Act, 1914. The Accumulations Act, 1892, applies to Scotland.
(See also TRUST AND TRUSTEES.)