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

Upon acceptance of a trusteeship, the trustee shall administer the trust and invest trust assets in good faith, in accordance with its terms and purposes and the interests of the beneficiaries, and in accordance with this chapter. In administering, managing and investing trust as…

A. A trustee shall administer the trust solely in the interests of the beneficiaries. B. Subject to the rights of persons dealing with or assisting the trustee as provided in § 64.2-803, a sale, encumbrance, or other transaction involving the investment or management of trust pro…

If a trust has two or more beneficiaries, the trustee shall act impartially in investing, managing, and distributing the trust property, giving due regard to the beneficiaries' respective interests.

A trustee shall administer the trust as a prudent person would, by considering the purposes, terms, distributional requirements, and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care, skill, and caution.

In administering a trust, the trustee may incur only costs that are reasonable in relation to the trust property, the purposes of the trust, and the skills of the trustee.

A trustee who has special skills or expertise, or is named trustee in reliance upon the trustee's representation that the trustee has special skills or expertise, shall use those special skills or expertise.

A. A trustee may delegate duties and powers that a prudent trustee of comparable skills could properly delegate under the circumstances. The trustee shall exercise reasonable care, skill, and caution in: 1. Selecting an agent; 2. Establishing the scope and terms of the delegation…

A trustee shall take reasonable steps to take control of and protect the trust property.

A. A trustee shall keep adequate records of the administration of the trust. B. A trustee shall keep trust property separate from the trustee's own property. C. Except as otherwise provided in subsection D, a trustee shall cause the trust property to be designated so that the int…

A trustee shall take reasonable steps to enforce claims of the trust and to defend claims against the trust.

A trustee shall take reasonable steps to compel a former trustee or other person to deliver trust property to the trustee, and to redress a breach of trust or duty known to the trustee to have been committed by a former trustee or other fiduciary.

A. A trustee shall keep the qualified beneficiaries of the trust reasonably informed about the administration of the trust and of the material facts necessary for them to protect their interests. Unless unreasonable under the circumstances, a trustee shall promptly respond to a b…

A. Notwithstanding the breadth of discretion granted to a trustee in the terms of the trust, including the use of such terms as "absolute," "sole," or "uncontrolled," the trustee shall exercise a discretionary power in good faith and in accordance with the terms and purposes of t…

A. A trustee, without authorization by the court, may exercise: 1. Powers conferred by the terms of the trust; and 2. Except as limited by the terms of the trust: a. All powers over the trust property that an unmarried competent owner has over individually owned property; b. Any …

A. Without limiting the authority conferred by § 64.2-777, a trustee may: 1. Collect trust property and accept or reject additions to the trust property from a settlor or any other person; 2. Acquire or sell property, for cash or on credit, at public or private sale; 3. Exchange,…

A. Upon termination or partial termination of a trust, the trustee may send to the beneficiaries a proposal for distribution. The right of any beneficiary to object to the proposed distribution terminates if the beneficiary does not notify the trustee of an objection within 30 da…

A. Except as otherwise provided in subsections B and C, this article applies to an express trust that is irrevocable or revocable by the settlor only with the consent of the trustee or a person holding an adverse interest. B. This article does not apply to a trust held solely for…

A. As used in this section: "Beneficiary with a disability" means a beneficiary of a first trust who the special-needs fiduciary believes may qualify for governmental benefits based on disability, whether or not the beneficiary currently receives those benefits or is an individua…

A. As used in this section: "Determinable charitable interest" means a charitable interest that is a right to a mandatory distribution currently, periodically, on the occurrence of a specified event, or after the passage of a specified time and that is unconditional or will be he…

A. An authorized fiduciary may not exercise the decanting power to the extent the first-trust instrument expressly prohibits exercise of: 1. The decanting power; or 2. A power granted by state law to the fiduciary to distribute part or all of the income or principal of the trust …

A. If a first-trust instrument specifies an authorized fiduciary's compensation, the fiduciary may not exercise the decanting power to increase the fiduciary's compensation above the specified compensation unless: 1. All qualified beneficiaries of the second trust consent to the …

A. Except as otherwise provided in this section, a second-trust instrument may not relieve an authorized fiduciary from liability for breach of trust to a greater extent than the first-trust instrument. B. A second-trust instrument may provide for indemnification of an authorized…

An authorized fiduciary may not exercise the decanting power to modify a provision in a first-trust instrument granting another person power to remove or replace the fiduciary unless: 1. The person holding the power consents to the modification in a signed record and the modifica…

A. As used in this section: "Grantor trust" means a trust as to which a settlor of a first trust is considered the owner under §§ 671 through 677 of the Internal Revenue Code or § 679 of the Internal Revenue Code. "Internal Revenue Code" means the United States Internal Revenue C…

A. Subject to subsection B, a second trust may have a duration that is the same as or different from the duration of the first trust. B. To the extent that property of a second trust is attributable to property of the first trust, the property of the second trust is subject to an…

An authorized fiduciary may exercise the decanting power whether or not under the first trust's discretionary distribution standard the fiduciary would have made or could have been compelled to make a discretionary distribution of income or principal at the time of the exercise.

A. If exercise of the decanting power would be effective under this article except that the second-trust instrument in part does not comply with this article, the exercise of the power is effective and the following rules apply with respect to the income or principal of the secon…

A. In exercising the decanting power, an authorized fiduciary shall act in accordance with its fiduciary duties, including the duty to act in accordance with the purposes of the first trust. B. This article does not create or imply a duty to exercise the decanting power or to inf…

A. As used in this section: "Animal trust" means a trust or an interest in a trust created to provide for the care of one or more animals. "Protector" means a person appointed in an animal trust to enforce the trust on behalf of the animal or, if no such person is appointed in th…

A reference in this chapter to a trust instrument or terms of the trust includes a second-trust instrument and the terms of the second trust.

A. For purposes of law of the Commonwealth other than this article and subject to subsection B, a settlor of a first trust is deemed to be the settlor of the second trust with respect to the portion of the income or principal of the first trust subject to the exercise of the deca…

A. Except as otherwise provided in subsection C, if exercise of the decanting power was intended to distribute all the income or principal of the first trust to one or more second trusts, later-discovered property belonging to the first trust and property paid to or acquired by t…

A debt, liability, or other obligation enforceable against property of a first trust is enforceable to the same extent against the property when held by the second trust after exercise of the decanting power.

If accounts for the first trust are filed with the commissioner of accounts, the accounts for the second trust shall be filed with the commissioner of accounts unless the court orders otherwise.

As used in this article, unless the context requires a different meaning: "Breach of trust" includes a violation by a trust director or trustee of a duty imposed on that trust director or trustee by the terms of the trust, this article, or law of the Commonwealth other than this …

A. Except as otherwise provided in subsection B and § 64.2-779.28, this article applies to a trust that has its principal place of administration in the Commonwealth and that: 1. Is created on or after July 1, 2020; 2. Is amended by a settlor on or after July 1, 2020; 3. Is amend…

A. This article does not apply to a: 1. Power of appointment; 2. Power to appoint or remove a trustee or trust director; 3. Power of a settlor over a trust to the extent the settlor has a power to revoke the trust; 4. Power of a beneficiary over a trust to the extent the exercise…

A. Subject to § 64.2-779.30, the terms of a trust may grant a power of direction to a trust director. B. Unless the terms of a trust provide otherwise: 1. A trust director may exercise any further power appropriate to the exercise or nonexercise of a power of direction granted to…

This article applies to a trust created before, on, or after July 1, 2017, that: 1. Has its principal place of administration in the Commonwealth, including a trust whose principal place of administration has been changed to the Commonwealth; or 2. Provides by its trust instrumen…

A trust director is subject to the same rules as a trustee in a like position and under similar circumstances in the exercise or nonexercise of a power of direction or further power under subdivision B 1 of § 64.2-779.29 regarding: 1. A payback provision in the terms of a trust n…

A. Subject to subsection B, with respect to a power of direction or further power under subdivision B 1 of § 64.2-779.29: 1. A trust director has the same fiduciary duty and liability in the exercise or nonexercise of the power: a. If the power is held individually, as a sole tru…

A. Subject to subsection B, a directed trustee shall take reasonable action to comply with a trust director's exercise or nonexercise of a power of direction or further power under subdivision B 1 of § 64.2-779.29, and the trustee is not liable for the action. B. A directed trust…

A. Subject to § 64.2-779.34, a trustee shall provide information to a trust director to the extent the information is reasonably related both to: 1. The powers or duties of the trustee; and 2. The powers or duties of the trust director. B. Subject to § 64.2-779.34, a trust direct…

A. Unless the terms of a trust provide otherwise: 1. A trustee does not have a duty to: a. Monitor a trust director; or b. Inform or give advice to a settlor, beneficiary, trustee, or trust director concerning an instance in which the trustee might have acted differently than the…

A. An action against a trust director for breach of trust must be commenced within the same limitation period as under § 64.2-796 for an action for breach of trust against a trustee in a like position and under similar circumstances. B. A report or accounting has the same effect …

In an action against a trust director for breach of trust, the trust director may assert the same defenses a trustee in a like position and under similar circumstances could assert in an action for breach of trust against the trustee.