Code of Virginia

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Code of Virginia
Title 64.2. Wills, Trusts, and Fiduciaries
Chapter 10. Uniform Principal and Income Act
5/8/2021

§ 64.2-1016. Insubstantial allocations not required.

If a trustee determines that an allocation between principal and income required by § 64.2-1017, 64.2-1018, 64.2-1019, 64.2-1020, or 64.2-1023 is insubstantial, the trustee may allocate the entire amount to principal unless one of the circumstances described in subsection C of § 64.2-1002 applies to the allocation. This power may be exercised by a cotrustee in the circumstances described in subsection D of § 64.2-1002 and may be released for the reasons and in the manner described in subsection E of § 64.2-1002. An allocation is presumed to be insubstantial if:

1. The amount of the allocation would increase or decrease net income in an accounting period, as determined before the allocation, by less than 10 percent; or

2. The value of the asset producing the receipt for which the allocation would be made is less than 10 percent of the total value of the trust's assets at the beginning of the accounting period.

1999, c. 975, § 55-277.17; 2012, c. 614.

The chapters of the acts of assembly referenced in the historical citation at the end of this section may not constitute a comprehensive list of such chapters and may exclude chapters whose provisions have expired.