Code of Virginia § 64.2-1040. Application; duties and remedies.
312 words·~1 min read·
/va/title-64-2/chapter-10-1/64-2-1040·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
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 unitrust amount; and
2. An express unitrust, except to the extent the terms of the trust explicitly:
a. Prohibit use of this article by a specific reference to this article;
b. Prohibit conversion to an income trust; or
c. Limit changes to the method of calculating the unitrust amount.
B. This article does not apply to a trust described in § 170(f)(2)(B), 642(c)(5), 664(d), 2702(a)(3)(A)(ii) or (iii), or 2702(b) of the Internal Revenue Code of 1986, as amended.
C. An income trust to which this article applies under subdivision A 1 may be converted to a unitrust under this article regardless of the terms of the trust concerning distributions. Conversion to a unitrust under this article does not affect other terms of the trust concerning distributions of income or principal.
D. This article applies to an estate only to the extent a trust is a beneficiary of the estate. To the extent of the trust's interest in the estate, the estate may be administered as a unitrust, the administration of the estate as a unitrust may be discontinued, or the percentage or method used to calculate the unitrust amount may be changed, in the same manner as for a trust under this article.
E. This article does not create a duty to take or consider action under this article or to inform a beneficiary about the applicability of this article.
F A fiduciary that in good faith takes or fails to take an action under this article is not liable to a person affected by the action or inaction.
2022, c. 354 .