Title 64.2, Title 64.2. Wills, Trusts, and Fiduciaries

A. As used in this section, "fiduciary decision" means: 1. A fiduciary's allocation between income and principal or other determination regarding income and principal required or authorized by the terms of the trust or this chapter; 2. The fiduciary's exercise or nonexercise of a…

A. Except as otherwise provided in the terms of a trust or this section, a fiduciary, in a record, without court approval, may adjust between income and principal if the fiduciary determines the exercise of the power to adjust will assist the fiduciary to administer the trust or …

As used in this article, unless the context requires a different meaning: "Applicable value" means the amount of the net fair market value of a trust taken into account under § 64.2-1045. "Express unitrust" means a trust for which, under the terms of the trust without regard to t…

A. Except as otherwise provided in subsection B, this article applies to: 1. An income trust, unless the terms of the trust expressly prohibit use of this article by a specific reference to this article or an explicit expression of intent that net income not be calculated as a un…

A. A fiduciary, without court approval, by complying with subsections B and F, may: 1. Convert an income trust to a unitrust if the fiduciary adopts in a record a unitrust policy for the trust providing: a. That in administering the trust the net income of the trust will be a uni…

A. A notice required by subdivision B 2 of § 64.2-1041 shall be sent in a manner authorized under § 64.2-707 to: 1. The qualified beneficiaries determined under § 64.2-701, other than the Attorney General; 2. Each person acting as trust director of the trust under the Uniform Dir…

A. In administering a unitrust under this article, a fiduciary shall follow a unitrust policy adopted under subdivision A 1 or 2 of § 64.2-1041 or amended or replaced under subdivision A 2 of § 64.2-1041. B. A unitrust policy shall provide: 1. The unitrust rate or the method for …

A. Except as otherwise provided in subdivision B 1 of § 64.2-1047, a unitrust rate may be: 1. A fixed unitrust rate; or 2. A unitrust rate that is determined for each period using: a. A market index or other published data; or b. A mathematical blend of market indices or other pu…

A. A unitrust policy must provide the method for determining the fair market value of an asset for the purpose of determining the unitrust amount, including: 1. The frequency of valuing the asset, which need not require a valuation in every period; and 2. The date for valuing the…

A. A unitrust policy must provide the period used under §§ 64.2-1044 and 64.2-1045. Except as otherwise provided in subdivision B 3 of § 64.2-1047, the period may be: 1. A calendar year; 2. A 12-month period other than a calendar year; 3. A calendar quarter; 4. A three-month peri…

A. A unitrust policy may: 1. Provide methods and standards for: a. Determining the timing of distributions; b. Making distributions in cash or in kind or partly in cash and partly in kind; or c. Correcting an underpayment or overpayment to a beneficiary based on the unitrust amou…

A. As used in this section: "Capital distribution" means an entity distribution of money that is a (i) return of capital or (ii) distribution in total or partial liquidation of the entity. "Entity" means a corporation, partnership, limited liability company, regulated investment …

A fiduciary shall allocate to income an amount received as a distribution of income, including a unitrust distribution under Article 3 (§ 64.2-1039 et seq.), from a trust or estate in which the fiduciary has an interest, other than an interest the fiduciary purchased in a trust t…

A. This section applies to a business or other activity conducted by a fiduciary if the fiduciary determines that it is in the interests of the beneficiaries to account separately for the business or other activity instead of: 1. Accounting for the business or other activity as p…

A fiduciary shall allocate to principal: 1. To the extent not allocated under this chapter, an asset received from: a. An individual during the individual's lifetime; b. An estate; c. A trust on termination of an income interest; or d. A payor under a contract naming the fiduciar…

To the extent a fiduciary does not account for the management of rental property as a business under § 64.2-1050, the fiduciary shall allocate to income an amount received as rent of real or personal property, including an amount received for cancellation or renewal of a lease. A…

A. This section does not apply to an obligation to which § 64.2-1056, 64.2-1057, 64.2-1058, 64.2-1059, 64.2-1061, 64.2-1062, or 64.2-1063 applies. B. A fiduciary shall allocate to income, without provision for amortization of premium, an amount received as interest on an obligati…

A. This section does not apply to a contract to which § 64.2-1056 applies. B. Except as otherwise provided in subsection C, a fiduciary shall allocate to principal the proceeds of a life insurance policy or other contract received by the fiduciary as beneficiary, including a cont…

A. If a fiduciary determines that an allocation between income and principal required by § 64.2-1056, 64.2-1057, 64.2-1058, 64.2-1059, or 64.2-1062 is insubstantial, the fiduciary may allocate the entire amount to principal, unless subsection E of § 64.2-1038 applies to the alloc…

A. As used in this section: "Internal income of a separate fund" means the amount determined under subsection B. "Marital trust" means a trust: 1. Of which the settlor's surviving spouse is the only current income beneficiary and is entitled to a distribution of all of the curren…

A. As used in this section, "liquidating asset" means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a limited time. "Liquidating asset" includes a leasehold, patent, copyright, royalty right, and right to receive payments du…

A. To the extent a fiduciary does not account for a receipt from an interest in minerals, water, or other natural resources as a business under § 64.2-1050, the fiduciary shall allocate the receipt: 1. To income, to the extent received: a. As delay rental or annual rent on a leas…

A. To the extent a fiduciary does not account for receipts from the sale of timber and related products as a business under § 64.2-1050, the fiduciary shall allocate the net receipts: 1. To income, to the extent the amount of timber cut from the land does not exceed the rate of g…

A. If a trust received property for which a gift or estate tax marital deduction was allowed and the settlor's spouse holds a mandatory income interest in the trust, the spouse may require the trustee, to the extent the trust assets otherwise do not provide the spouse with suffic…

A. As used in this section, "derivative" means a contract, instrument, other arrangement, or combination of contracts, instruments, or other arrangements, the value, rights, and obligations of which are, in whole or in part, dependent on or derived from an underlying tangible or …

A. Except as otherwise provided in subsection B, a fiduciary shall allocate to income a receipt from or related to an asset-backed security, to the extent the payor identifies the payment as being from interest or other current return, and to principal the balance of the receipt.…

A fiduciary shall allocate receipts from or related to a financial instrument or arrangement not otherwise addressed by this chapter. The allocation must be consistent with §§ 64.2-1061 and 64.2-1062.

Subject to § 64.2-1067, and except as otherwise provided in subdivision C 2 or 3 of § 64.2-1071, a fiduciary shall disburse from income: 1. One-half of: a. The regular compensation of the fiduciary and any person providing investment advisory, custodial, or other services to the …

A. Subject to § 64.2-1068, and except as otherwise provided in subdivision C 2 of § 64.2-1071, a fiduciary shall disburse from principal: 1. The balance of the disbursements described in subdivisions 1 and 3 of § 64.2-1064, after application of subdivision 2 of § 64.2-1064; 2. Th…

A. As used in this section, "depreciation" means a reduction in value due to wear, tear, decay, corrosion, or gradual obsolescence of a tangible asset having a useful life of more than one year. B. A fiduciary may transfer to principal a reasonable amount of the net cash receipts…

A. If a fiduciary makes or expects to make an income disbursement described in subsection B, the fiduciary may transfer an appropriate amount from principal to income in one or more accounting periods to reimburse income. B. To the extent the fiduciary has not been and does not e…

A. If a fiduciary makes or expects to make a principal disbursement described in subsection B, the fiduciary may transfer an appropriate amount from income to principal in one or more accounting periods to reimburse principal or provide a reserve for future principal disbursement…

A. A tax required to be paid by a fiduciary that is based on receipts allocated to income must be paid from income. B. A tax required to be paid by a fiduciary that is based on receipts allocated to principal must be paid from principal, even if the tax is called an income tax by…

A. A fiduciary may make an adjustment between income and principal to offset the shifting of economic interests or tax benefits between current income beneficiaries and successor beneficiaries that arises from: 1. An election or decision the fiduciary makes regarding a tax matter…

A. This section applies when: 1. The death of an individual results in the creation of an estate or trust; or 2. An income interest in a trust terminates, whether the trust continues or is distributed. B. A fiduciary of an estate or trust with an income interest that terminates s…

A. Except to the extent Article 3 (§ 64.2-1039 et seq.) applies for a beneficiary that is a trust, each beneficiary described in subsection F of § 64.2-1071 is entitled to receive a share of the net income equal to the beneficiary's fractional interest in undistributed principal …

A. An income beneficiary is entitled to net income in accordance with the terms of the trust from the date an income interest begins. The income interest begins on the date specified in the terms of the trust or, if no date is specified, on the date an asset becomes subject to: 1…

A. A fiduciary shall allocate an income receipt or disbursement, other than a receipt to which subsection B of § 64.2-1071 applies, to principal if its due date occurs before the date on which: 1. For an estate, the decedent died; or 2. For a trust or successive interest, an inco…

A. As used in this section, "undistributed income" means net income received on or before the date on which an income interest ends. "Undistributed income" does not include an item of income or expense that is due or accrued or net income that has been added or is required to be …

In applying and construing this uniform act, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.

This chapter modifies, limits, or supersedes the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. § 7001 et seq., but does not modify, limit, or supersede § 101(c) of that act, 15 U.S.C. § 7001(c), or authorize electronic delivery of any of the notices describ…

This chapter applies to a trust or estate existing or created on or after July 1, 2022, except as otherwise expressly provided in the terms of the trust or this chapter.