SECTIONS 722-726 - California Statutes

CIVIL CODE

SECTION 722-726

722. Dispositions of the income of property to accrue and to be
received at any time subsequent to the execution of the instrument
creating such disposition are governed by the rules relating to
future interests.

723. All directions for the accumulation of the income of property,
except such as are allowed by this Title, are void.

724. (a) An accumulation of the income of property may be directed
by any will, trust or transfer in writing sufficient to pass the
property or create the trust out of which the fund is to arise, for
the benefit of one or more persons, objects or purposes, but may not
extend beyond the time permitted for the vesting of future interests.
(b) Notwithstanding subdivision (a), the income arising from real
or personal property held in a trust forming part of a profit-sharing
plan of an employer for the exclusive benefit of its employees or
their beneficiaries or forming part of a retirement plan formed
primarily for the purpose of providing benefits for employees on or
after retirement may be permitted to accumulate until the fund is
sufficient, in the opinion of the trustee or trustees, to accomplish
the purposes of the trust.

725. If the direction for an accumulation of the income of property
is for a longer term than is limited in the last section, the
direction only, whether separable or not from the other provisions of
the instrument, is void as respects the time beyond the limit
prescribed in said last section, and no other part of such instrument
is affected by the void portion of such direction.

726. When one or more persons for whose benefit an accumulation of
income has been directed is or are destitute of other sufficient
means of support or education, the proper court, upon application,
may direct a suitable sum to be applied thereto out of the fund
directed to be accumulated for the benefit of such person or persons.