§ 64.2-732 Modification or termination of uneconomic trust
A. After notice to the qualified beneficiaries, the trustee of a trust consisting of trust property having a total value less than $250,000 may terminate the trust without court approval if the trustee concludes that the value of the trust property is insufficient to justify the cost of administration. Notice required by this section shall be sent in accordance with § 64.2-707.
B. The court may modify or terminate a trust or remove the trustee and appoint a different trustee if it determines that the value of the trust property is insufficient to justify the cost of administration.
C. Upon termination of a trust under this section, the trustee shall distribute the trust property in a manner consistent with the purposes of the trust and may simultaneously utilize the provisions of § 64.2-779.
D. This section does not apply to an easement for conservation or preservation.
E. Expenses incurred by the trustee incident to the termination of a trust pursuant to this section shall be paid by the trust estate.
History
This law was first created in 2005. The record of its establishment is cataloged in chapter 935 of that year’s edition of “Acts of Assembly,” the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 3 times. Those modifications are cataloged by “The Acts of Assembly,” a state publication, by year and chapter. Those modifications that can be read on the General Assembly’s website will be linked accordingly. Those modifications are as follows: in 2012, chapter 614; in 2024, chapters 282 and 336; in 2025, chapter 148.
2005, c. 935, § 55-544.14; 2012, c. 614; 2024, cc. 282, 336; 2025, c. 148.