Code of Virginia

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

§ 64.2-1018. Liquidating asset.

A. In this section, "liquidating asset" means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a period of limited duration. The term includes a leasehold, patent, copyright, or royalty right, and a right to receive payments during a period of more than one year under an arrangement that does not provide for the payment of interest on the unpaid balance. The term does not include a payment subject to § 64.2-1017, resources subject to § 64.2-1019, timber subject to § 64.2-1020, an activity subject to § 64.2-1022, an asset subject to § 64.2-1023, or any asset for which the trustee establishes a reserve for depreciation under § 64.2-1026.

B. A trustee shall allocate to income 10 percent of the receipts from a liquidating asset and the balance to principal.

1999, c. 975, § 55-277.19; 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.