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Rule Against Accumulations

   Also found in: Legal 0.01 sec.
Rule Against Accumulations
In trusts, the legal concept forbidding interest or coupons from being added back into a trust's principal after a given number of years. The rule effectively sets a limit on the number of years a trust can exist, or at least prevents trusts from accumulating income and not distributing it. See also: Rule against perpetuities.


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