This report examines the various Rules in the law of will and trusts with have been subject to criticism to see whether the Rules should be altered, and if so what the new provisions should be. One of these Rules is called the rule in Saunders v Vautier which states: Where there is an absolute vested gift made payable at the future even with a direction to accumulate the income in the meantime and pay it with the principal, the court will not enforce the trust for accumulation, in which no person has any interest but the legatee.

The basic recommendation is that the variation or termination of a trust prior to the period of its duration as specified by the terms of the trust shall require the consent to the court. This puts an end to the rule in Saunders v Vautier but instead of stopping there and thus creating the American rule, it goes on and gives the court power to decide between upholding the donor’s wishes in toto, or contrariwise the donee’s wishes in toto, or to approve a disposition between these two extremes.