{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/64.2-1036.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/64.2-1036.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/64.2-1036.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/64.2-1036.html"}],"law_id":79031,"edition_id":1,"section_id":79031,"structure_id":16330,"section_number":"64.2-1036","catch_line":"Fiduciary duties; general principles","history":"2022, c. 354.","full_text":"A\n\nIn making an allocation or determination or exercising discretion under this chapter, a fiduciary shall:1\n\nAct in good faith, based on what is fair and reasonable to all beneficiaries;2\n\nAdminister a trust or estate impartially, except to the extent the terms of the trust manifest an intent that the fiduciary shall or may favor one or more beneficiaries;3\n\nAdminister the trust or estate in accordance with the terms of the trust, even if there is a different provision in this chapter; and4\n\nAdminister the trust or estate in accordance with this chapter, except to the extent the terms of the trust provide otherwise or authorize the fiduciary to determine otherwise.B\n\nA fiduciary’s allocation, determination, or exercise of discretion under this chapter is presumed to be fair and reasonable to all beneficiaries. A fiduciary may exercise a discretionary power of administration given to the fiduciary by the terms of the trust, and an exercise of the power that produces a result different from a result required or permitted by this chapter does not create an inference that the fiduciary abused the fiduciary’s discretion.C\n\nA fiduciary shall:1\n\nAdd a receipt to principal, to the extent neither the terms of the trust nor this chapter allocates the receipt between income and principal; and2\n\nCharge a disbursement to principal, to the extent neither the terms of the trust nor this chapter allocates the disbursement between income and principal.D\n\nA fiduciary may exercise the power to adjust under § 64.2-1038, convert an income trust to a unitrust under subdivision A 1 of § 64.2-1041, change the percentage or method used to calculate a unitrust amount under subdivision A 2 of § 64.2-1041, or convert a unitrust to an income trust under subdivision A 3 of § 64.2-1041 if the fiduciary determines the exercise of the power will assist the fiduciary to administer the trust or estate impartially.E\n\nFactors the fiduciary must consider in making the determination under subsection D include:1\n\nThe terms of the trust;2\n\nThe nature, distribution standards, and expected duration of the trust;3\n\nThe effect of the allocation rules, including specific adjustments between income and principal, under Articles 4 (§ 64.2-1048 et seq.) through 9 (§ 64.2-1073 et seq.);4\n\nThe desirability of liquidity and regularity of income;5\n\nThe desirability of the preservation and appreciation of principal;6\n\nThe extent to which an asset is used or may be used by a beneficiary;7\n\nThe increase or decrease in the value of principal assets, reasonably determined by the fiduciary;8\n\nWhether and to what extent the terms of the trust give the fiduciary power to accumulate income or invade principal or prohibit the fiduciary from accumulating income or invading principal;9\n\nThe extent to which the fiduciary has accumulated income or invaded principal in preceding accounting periods;10\n\nThe effect of current and reasonably expected economic conditions; and11\n\nThe reasonably expected tax consequences of the exercise of the power.","order_by":null,"text":{"0":{"id":283082,"text":"In making an allocation or determination or exercising discretion under this chapter, a fiduciary shall:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":283083,"text":"Act in good faith, based on what is fair and reasonable to all beneficiaries;","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":283084,"text":"Administer a trust or estate impartially, except to the extent the terms of the trust manifest an intent that the fiduciary shall or may favor one or more beneficiaries;","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":283085,"text":"Administer the trust or estate in accordance with the terms of the trust, even if there is a different provision in this chapter; and","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"A4"},"4":{"id":283086,"text":"Administer the trust or estate in accordance with this chapter, except to the extent the terms of the trust provide otherwise or authorize the fiduciary to determine otherwise.","type":"section","prefixes":["A","4"],"prefix":"4","entire_prefix":"A4","prefix_anchor":"A4","level":2,"prior_prefix":"A3","next_prefix":"B"},"5":{"id":283087,"text":"A fiduciary’s allocation, determination, or exercise of discretion under this chapter is presumed to be fair and reasonable to all beneficiaries. A fiduciary may exercise a discretionary power of administration given to the fiduciary by the terms of the trust, and an exercise of the power that produces a result different from a result required or permitted by this chapter does not create an inference that the fiduciary abused the fiduciary’s discretion.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A4","next_prefix":"C"},"6":{"id":283088,"text":"A fiduciary shall:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"C1"},"7":{"id":283089,"text":"Add a receipt to principal, to the extent neither the terms of the trust nor this chapter allocates the receipt between income and principal; and","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"8":{"id":283090,"text":"Charge a disbursement to principal, to the extent neither the terms of the trust nor this chapter allocates the disbursement between income and principal.","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"D"},"9":{"id":283091,"text":"A fiduciary may exercise the power to adjust under § 64.2-1038, convert an income trust to a unitrust under subdivision A 1 of § 64.2-1041, change the percentage or method used to calculate a unitrust amount under subdivision A 2 of § 64.2-1041, or convert a unitrust to an income trust under subdivision A 3 of § 64.2-1041 if the fiduciary determines the exercise of the power will assist the fiduciary to administer the trust or estate impartially.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C2","next_prefix":"E"},"10":{"id":283092,"text":"Factors the fiduciary must consider in making the determination under subsection D include:","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"E1"},"11":{"id":283093,"text":"The terms of the trust;","type":"section","prefixes":["E","1"],"prefix":"1","entire_prefix":"E1","prefix_anchor":"E1","level":2,"prior_prefix":"E","next_prefix":"E2"},"12":{"id":283094,"text":"The nature, distribution standards, and expected duration of the trust;","type":"section","prefixes":["E","2"],"prefix":"2","entire_prefix":"E2","prefix_anchor":"E2","level":2,"prior_prefix":"E1","next_prefix":"E3"},"13":{"id":283095,"text":"The effect of the allocation rules, including specific adjustments between income and principal, under Articles 4 (§ 64.2-1048 et seq.) through 9 (§ 64.2-1073 et seq.);","type":"section","prefixes":["E","3"],"prefix":"3","entire_prefix":"E3","prefix_anchor":"E3","level":2,"prior_prefix":"E2","next_prefix":"E4"},"14":{"id":283096,"text":"The desirability of liquidity and regularity of income;","type":"section","prefixes":["E","4"],"prefix":"4","entire_prefix":"E4","prefix_anchor":"E4","level":2,"prior_prefix":"E3","next_prefix":"E5"},"15":{"id":283097,"text":"The desirability of the preservation and appreciation of principal;","type":"section","prefixes":["E","5"],"prefix":"5","entire_prefix":"E5","prefix_anchor":"E5","level":2,"prior_prefix":"E4","next_prefix":"E6"},"16":{"id":283098,"text":"The extent to which an asset is used or may be used by a beneficiary;","type":"section","prefixes":["E","6"],"prefix":"6","entire_prefix":"E6","prefix_anchor":"E6","level":2,"prior_prefix":"E5","next_prefix":"E7"},"17":{"id":283099,"text":"The increase or decrease in the value of principal assets, reasonably determined by the fiduciary;","type":"section","prefixes":["E","7"],"prefix":"7","entire_prefix":"E7","prefix_anchor":"E7","level":2,"prior_prefix":"E6","next_prefix":"E8"},"18":{"id":283100,"text":"Whether and to what extent the terms of the trust give the fiduciary power to accumulate income or invade principal or prohibit the fiduciary from accumulating income or invading principal;","type":"section","prefixes":["E","8"],"prefix":"8","entire_prefix":"E8","prefix_anchor":"E8","level":2,"prior_prefix":"E7","next_prefix":"E9"},"19":{"id":283101,"text":"The extent to which the fiduciary has accumulated income or invaded principal in preceding accounting periods;","type":"section","prefixes":["E","9"],"prefix":"9","entire_prefix":"E9","prefix_anchor":"E9","level":2,"prior_prefix":"E8","next_prefix":"E10"},"20":{"id":283102,"text":"The effect of current and reasonably expected economic conditions; and","type":"section","prefixes":["E","10"],"prefix":"10","entire_prefix":"E10","prefix_anchor":"E10","level":2,"prior_prefix":"E9","next_prefix":"E11"},"21":{"id":283103,"text":"The reasonably expected tax consequences of the exercise of the power.","type":"section","prefixes":["E","11"],"prefix":"11","entire_prefix":"E11","prefix_anchor":"E11","level":2,"prior_prefix":"E10"}},"ancestry":[{"id":16330,"edition_id":1,"name":"Fiduciary Duties and Judicial Review","identifier":"2","label":"article","depth":4,"order_by":1,"parent_id":13478,"metadata":{},"date_created":"2026-06-26 04:14:11","date_modified":"2026-06-26 04:14:11","permalink":{"id":273893,"object_type":"structure","relational_id":16330,"identifier":"2","token":"64.2\/III\/10.1\/2","url":"\/64.2\/III\/10.1\/2\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13478,"edition_id":1,"name":"Uniform Fiduciary Income And Principal Act","identifier":"10.1","label":"chapter","depth":3,"order_by":1,"parent_id":12724,"metadata":{},"date_created":"2026-06-26 03:44:58","date_modified":"2026-06-26 03:44:58","permalink":{"id":273863,"object_type":"structure","relational_id":13478,"identifier":"10.1","token":"64.2\/III\/10.1","url":"\/64.2\/III\/10.1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12724,"edition_id":1,"name":"Trusts","identifier":"III","label":"subtitle","depth":2,"order_by":1,"parent_id":12723,"metadata":{},"date_created":"2026-06-26 03:43:50","date_modified":"2026-06-26 03:43:50","permalink":{"id":273811,"object_type":"structure","relational_id":12724,"identifier":"III","token":"64.2\/III","url":"\/64.2\/III\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12723,"edition_id":1,"name":"Wills, Trusts, and Fiduciaries","identifier":"64.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:50","date_modified":"2026-06-26 03:43:50","permalink":{"id":272781,"object_type":"structure","relational_id":12723,"identifier":"64.2","token":"64.2","url":"\/64.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":79031,"structure_id":16330,"section_number":"64.2-1036","catch_line":"Fiduciary duties; general principles","url":"\/64.2-1036\/","token":"64.2\/III\/10.1\/2\/64.2-1036","metadata":false},{"id":66868,"structure_id":16330,"section_number":"64.2-1037","catch_line":"Judicial review of exercise of discretionary power; request for instruction","url":"\/64.2-1037\/","token":"64.2\/III\/10.1\/2\/64.2-1037","metadata":false},{"id":80594,"structure_id":16330,"section_number":"64.2-1038","catch_line":"Fiduciary's power to adjust","url":"\/64.2-1038\/","token":"64.2\/III\/10.1\/2\/64.2-1038","metadata":false}],"next_section":{"id":66868,"structure_id":16330,"section_number":"64.2-1037","catch_line":"Judicial review of exercise of discretionary power; request for instruction","url":"\/64.2-1037\/","token":"64.2\/III\/10.1\/2\/64.2-1037","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/64.2-1036\/","history_text":"

This law was first created in 2022. The record of its establishment is cataloged in chapter 354<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":[{"id":80594,"section_number":"64.2-1038","catch_line":"Fiduciary's power to adjust","order_by":null,"url":"\/64.2-1038\/"}],"refers_to":[{"id":80594,"section_number":"64.2-1038","catch_line":"Fiduciary's power to adjust","order_by":null,"url":"\/64.2-1038\/"},{"id":74484,"section_number":"64.2-1041","catch_line":"Authority of fiduciary","order_by":null,"url":"\/64.2-1041\/"},{"id":59116,"section_number":"64.2-1048","catch_line":"Character of receipts from entity","order_by":null,"url":"\/64.2-1048\/"},{"id":62227,"section_number":"64.2-1073","catch_line":"When right to income begins and ends","order_by":null,"url":"\/64.2-1073\/"}],"permalink":{"id":273895,"object_type":"law","relational_id":79031,"identifier":"64.2-1036","token":"64.2\/III\/10.1\/2\/64.2-1036","url":"\/64.2-1036\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/64.2-1036\/","token":"64.2\/III\/10.1\/2\/64.2-1036","dublin_core":{"Title":"Fiduciary duties; general principles","Type":"Text","Format":"text\/html","Identifier":"\u00a7 64.2-1036","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> In making an allocation or determination or exercising discretion under this chapter, a fiduciary<\/span> shall: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Act in good faith, based on what is fair and reasonable to all beneficiaries; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Administer a trust<\/span> or estate<\/span> impartially, except to the extent the terms of the trust<\/span> manifest an intent<\/span> that the fiduciary<\/span> shall or may favor one or more beneficiaries; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Administer the trust<\/span> or estate<\/span> in accordance with the terms of the trust<\/span>, even if there is a different provision in this chapter; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Administer the trust<\/span> or estate<\/span> in accordance with this chapter, except to the extent the terms of the trust<\/span> provide otherwise or authorize the fiduciary<\/span> to determine otherwise. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> A fiduciary<\/span>’s allocation, determination, or exercise of discretion under this chapter is presumed to be fair and reasonable to all beneficiaries. A fiduciary<\/span> may exercise a discretionary power of administration given to the fiduciary<\/span> by the terms of the trust<\/span>, and an exercise of the power that produces a result different from a result required or permitted by this chapter does not create an inference that the fiduciary<\/span> abused the fiduciary<\/span>’s discretion. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> A fiduciary<\/span> shall: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Add a receipt to principal<\/span>, to the extent neither the terms of the trust<\/span> nor this chapter allocates the receipt between income<\/span> and principal<\/span>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Charge a disbursement to principal<\/span>, to the extent neither the terms of the trust<\/span> nor this chapter allocates the disbursement between income<\/span> and principal<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> A fiduciary<\/span> may exercise the power to adjust under § 64.2-1038<\/a>, convert an income<\/span> trust<\/span> to a unitrust under subdivision A 1 of § 64.2-1041<\/a>, change the percentage or method used to calculate a unitrust amount under subdivision A 2 of § 64.2-1041<\/a>, or convert a unitrust to an income<\/span> trust<\/span> under subdivision A 3 of § 64.2-1041<\/a> if the fiduciary<\/span> determines the exercise of the power will<\/span> assist the fiduciary<\/span> to administer the trust<\/span> or estate<\/span> impartially. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> Factors the fiduciary<\/span> must consider in making the determination under subsection D include: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The terms of the trust<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The nature, distribution<\/span> standards, and expected duration of the trust<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The effect of the allocation rules, including specific adjustments between income<\/span> and principal<\/span>, under Articles 4 (§ 64.2-1048<\/a> et seq.) through 9 (§ 64.2-1073<\/a> et seq.); <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> The desirability of liquidity and regularity of income<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> The desirability of the preservation and appreciation of principal<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> The extent to which an asset is used or may be used by a beneficiary; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> The increase or decrease in the value<\/span> of principal<\/span> assets<\/span>, reasonably determined by the fiduciary<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> Whether and to what extent the terms of the trust<\/span> give the fiduciary<\/span> power to accumulate income<\/span> or invade principal<\/span> or prohibit the fiduciary<\/span> from accumulating income<\/span> or invading principal<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

9.<\/span> The extent to which the fiduciary<\/span> has accumulated income<\/span> or invaded principal<\/span> in preceding accounting periods<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

10.<\/span> The effect of current and reasonably expected economic conditions; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

11.<\/span> The reasonably expected tax consequences of the exercise of the power. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nFIDUCIARY DUTIES; GENERAL PRINCIPLES (\u00a7 64.2-1036)\n\nA. In making an allocation or determination or exercising discretion under this\nchapter, a fiduciary shall:\n\n 1. Act in good faith, based on what is fair and reasonable to all\n beneficiaries;\n\n 2. Administer a trust or estate impartially, except to the extent the terms of\n the trust manifest an intent that the fiduciary shall or may favor one or more\n beneficiaries;\n\n 3. Administer the trust or estate in accordance with the terms of the trust,\n even if there is a different provision in this chapter; and\n\n 4. Administer the trust or estate in accordance with this chapter, except to\n the extent the terms of the trust provide otherwise or authorize the fiduciary\n to determine otherwise.\n\nB. A fiduciary’s allocation, determination, or exercise of discretion\nunder this chapter is presumed to be fair and reasonable to all beneficiaries. A\nfiduciary may exercise a discretionary power of administration given to the\nfiduciary by the terms of the trust, and an exercise of the power that produces\na result different from a result required or permitted by this chapter does not\ncreate an inference that the fiduciary abused the fiduciary’s discretion.\n\nC. A fiduciary shall:\n\n 1. Add a receipt to principal, to the extent neither the terms of the trust\n nor this chapter allocates the receipt between income and principal; and\n\n 2. Charge a disbursement to principal, to the extent neither the terms of the\n trust nor this chapter allocates the disbursement between income and\n principal.\n\nD. A fiduciary may exercise the power to adjust under § 64.2-1038, convert\nan income trust to a unitrust under subdivision A 1 of § 64.2-1041, change\nthe percentage or method used to calculate a unitrust amount under subdivision A\n2 of § 64.2-1041, or convert a unitrust to an income trust under\nsubdivision A 3 of § 64.2-1041 if the fiduciary determines the exercise of\nthe power will assist the fiduciary to administer the trust or estate\nimpartially.\n\nE. Factors the fiduciary must consider in making the determination under\nsubsection D include:\n\n 1. The terms of the trust;\n\n 2. The nature, distribution standards, and expected duration of the trust;\n\n 3. The effect of the allocation rules, including specific adjustments between\n income and principal, under Articles 4 (§ 64.2-1048 et seq.) through 9\n (§ 64.2-1073 et seq.);\n\n 4. The desirability of liquidity and regularity of income;\n\n 5. The desirability of the preservation and appreciation of principal;\n\n 6. The extent to which an asset is used or may be used by a beneficiary;\n\n 7. The increase or decrease in the value of principal assets, reasonably\n determined by the fiduciary;\n\n 8. Whether and to what extent the terms of the trust give the fiduciary power\n to accumulate income or invade principal or prohibit the fiduciary from\n accumulating income or invading principal;\n\n 9. The extent to which the fiduciary has accumulated income or invaded\n principal in preceding accounting periods;\n\n 10. The effect of current and reasonably expected economic conditions; and\n\n 11. The reasonably expected tax consequences of the exercise of the power.\n\nHISTORY: 2022, c. 354.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}