{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/64.2-1050.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/64.2-1050.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/64.2-1050.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/64.2-1050.html"}],"law_id":60866,"edition_id":1,"section_id":60866,"structure_id":15510,"section_number":"64.2-1050","catch_line":"Business or other activity conducted by fiduciary","history":"2022, c. 354.","full_text":"A\n\nThis section applies to a business or other activity conducted by a fiduciary if the fiduciary determines that it is in the interests of the beneficiaries to account separately for the business or other activity instead of:1\n\nAccounting for the business or other activity as part of the fiduciary’s general accounting records; or2\n\nConducting the business or other activity through an entity defined in subsection A of § 64.2-1048.B\n\nA fiduciary may account separately under this section for the transactions of a business or other activity, whether or not assets of the business or other activity are segregated from other assets held by the fiduciary.C\n\nA fiduciary that accounts separately under this section for a business or other activity:1\n\nMay determine:\n\t\t\t\ta. The extent to which the net cash receipts of the business or other activity must be retained for:1\n\nWorking capital;2\n\nThe acquisition or replacement of fixed assets; and3\n\nOther reasonably foreseeable needs of the business or other activity; and\n\t\t\t\t\tb. The extent to which the remaining net cash receipts are accounted for as principal or income in the fiduciary’s general accounting records for the trust;2\n\nMay make a determination under subdivision 1 separately and differently from the fiduciary’s decisions concerning distributions of income or principal; and3\n\nShall account for the net amount received from the sale of an asset of the business or other activity, other than a sale in the ordinary course of the business or other activity, as principal in the fiduciary’s general accounting records for the trust, to the extent the fiduciary determines that the net amount received is no longer required in the conduct of the business or other activity.D\n\nActivities for which a fiduciary may account separately under this section include:1\n\nRetail, manufacturing, service, and other traditional business activities;2\n\nFarming;3\n\nRaising and selling livestock and other animals;4\n\nManaging rental properties;5\n\nExtracting minerals, water, and other natural resources;6\n\nGrowing and cutting timber;7\n\nAn activity to which § 64.2-1061, 64.2-1062, or 64.2-1063 applies; and8\n\nAny other business conducted by the fiduciary.","order_by":null,"text":{"0":{"id":222522,"text":"This section applies to a business or other activity conducted by a fiduciary if the fiduciary determines that it is in the interests of the beneficiaries to account separately for the business or other activity instead of:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":222523,"text":"Accounting for the business or other activity as part of the fiduciary’s general accounting records; or","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":222524,"text":"Conducting the business or other activity through an entity defined in subsection A of § 64.2-1048.","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"B"},"3":{"id":222525,"text":"A fiduciary may account separately under this section for the transactions of a business or other activity, whether or not assets of the business or other activity are segregated from other assets held by the fiduciary.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A2","next_prefix":"C"},"4":{"id":222526,"text":"A fiduciary that accounts separately under this section for a business or other activity:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"C1"},"5":{"id":222527,"text":"May determine:\n\t\t\t\ta. The extent to which the net cash receipts of the business or other activity must be retained for:","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C11"},"6":{"id":222528,"text":"Working capital;","type":"section","prefixes":["C","1","1"],"prefix":"1","entire_prefix":"C11","prefix_anchor":"C11","level":3,"prior_prefix":"C1","next_prefix":"C12"},"7":{"id":222529,"text":"The acquisition or replacement of fixed assets; and","type":"section","prefixes":["C","1","2"],"prefix":"2","entire_prefix":"C12","prefix_anchor":"C12","level":3,"prior_prefix":"C11","next_prefix":"C13"},"8":{"id":222530,"text":"Other reasonably foreseeable needs of the business or other activity; and\n\t\t\t\t\tb. The extent to which the remaining net cash receipts are accounted for as principal or income in the fiduciary’s general accounting records for the trust;","type":"section","prefixes":["C","1","3"],"prefix":"3","entire_prefix":"C13","prefix_anchor":"C13","level":3,"prior_prefix":"C12","next_prefix":"C2"},"9":{"id":222531,"text":"May make a determination under subdivision 1 separately and differently from the fiduciary’s decisions concerning distributions of income or principal; and","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C13","next_prefix":"C3"},"10":{"id":222532,"text":"Shall account for the net amount received from the sale of an asset of the business or other activity, other than a sale in the ordinary course of the business or other activity, as principal in the fiduciary’s general accounting records for the trust, to the extent the fiduciary determines that the net amount received is no longer required in the conduct of the business or other activity.","type":"section","prefixes":["C","3"],"prefix":"3","entire_prefix":"C3","prefix_anchor":"C3","level":2,"prior_prefix":"C2","next_prefix":"D"},"11":{"id":222533,"text":"Activities for which a fiduciary may account separately under this section include:","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C3","next_prefix":"D1"},"12":{"id":222534,"text":"Retail, manufacturing, service, and other traditional business activities;","type":"section","prefixes":["D","1"],"prefix":"1","entire_prefix":"D1","prefix_anchor":"D1","level":2,"prior_prefix":"D","next_prefix":"D2"},"13":{"id":222535,"text":"Farming;","type":"section","prefixes":["D","2"],"prefix":"2","entire_prefix":"D2","prefix_anchor":"D2","level":2,"prior_prefix":"D1","next_prefix":"D3"},"14":{"id":222536,"text":"Raising and selling livestock and other animals;","type":"section","prefixes":["D","3"],"prefix":"3","entire_prefix":"D3","prefix_anchor":"D3","level":2,"prior_prefix":"D2","next_prefix":"D4"},"15":{"id":222537,"text":"Managing rental properties;","type":"section","prefixes":["D","4"],"prefix":"4","entire_prefix":"D4","prefix_anchor":"D4","level":2,"prior_prefix":"D3","next_prefix":"D5"},"16":{"id":222538,"text":"Extracting minerals, water, and other natural resources;","type":"section","prefixes":["D","5"],"prefix":"5","entire_prefix":"D5","prefix_anchor":"D5","level":2,"prior_prefix":"D4","next_prefix":"D6"},"17":{"id":222539,"text":"Growing and cutting timber;","type":"section","prefixes":["D","6"],"prefix":"6","entire_prefix":"D6","prefix_anchor":"D6","level":2,"prior_prefix":"D5","next_prefix":"D7"},"18":{"id":222540,"text":"An activity to which § 64.2-1061, 64.2-1062, or 64.2-1063 applies; and","type":"section","prefixes":["D","7"],"prefix":"7","entire_prefix":"D7","prefix_anchor":"D7","level":2,"prior_prefix":"D6","next_prefix":"D8"},"19":{"id":222541,"text":"Any other business conducted by the fiduciary.","type":"section","prefixes":["D","8"],"prefix":"8","entire_prefix":"D8","prefix_anchor":"D8","level":2,"prior_prefix":"D7"}},"ancestry":[{"id":15510,"edition_id":1,"name":"Allocation of Receipts: Receipts from Entity","identifier":"4","label":"article","depth":4,"order_by":1,"parent_id":13478,"metadata":{},"date_created":"2026-06-26 03:55:40","date_modified":"2026-06-26 03:55:40","permalink":{"id":273945,"object_type":"structure","relational_id":15510,"identifier":"4","token":"64.2\/III\/10.1\/4","url":"\/64.2\/III\/10.1\/4\/","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":59116,"structure_id":15510,"section_number":"64.2-1048","catch_line":"Character of receipts from entity","url":"\/64.2-1048\/","token":"64.2\/III\/10.1\/4\/64.2-1048","metadata":false},{"id":80790,"structure_id":15510,"section_number":"64.2-1049","catch_line":"Distribution from trust or estate","url":"\/64.2-1049\/","token":"64.2\/III\/10.1\/4\/64.2-1049","metadata":false},{"id":60866,"structure_id":15510,"section_number":"64.2-1050","catch_line":"Business or other activity conducted by fiduciary","url":"\/64.2-1050\/","token":"64.2\/III\/10.1\/4\/64.2-1050","metadata":false}],"previous_section":{"id":80790,"structure_id":15510,"section_number":"64.2-1049","catch_line":"Distribution from trust or estate","url":"\/64.2-1049\/","token":"64.2\/III\/10.1\/4\/64.2-1049","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/64.2-1050\/","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":59116,"section_number":"64.2-1048","catch_line":"Character of receipts from entity","order_by":null,"url":"\/64.2-1048\/"},{"id":61694,"section_number":"64.2-1052","catch_line":"Rental property","order_by":null,"url":"\/64.2-1052\/"},{"id":54443,"section_number":"64.2-1054","catch_line":"Insurance policy or contract","order_by":null,"url":"\/64.2-1054\/"},{"id":64796,"section_number":"64.2-1058","catch_line":"Minerals, water, and other natural resources","order_by":null,"url":"\/64.2-1058\/"},{"id":59724,"section_number":"64.2-1059","catch_line":"Timber","order_by":null,"url":"\/64.2-1059\/"},{"id":67825,"section_number":"64.2-1061","catch_line":"Derivative or option","order_by":null,"url":"\/64.2-1061\/"},{"id":85159,"section_number":"64.2-1066","catch_line":"Transfer from income to principal for depreciation","order_by":null,"url":"\/64.2-1066\/"}],"refers_to":[{"id":67825,"section_number":"64.2-1061","catch_line":"Derivative or option","order_by":null,"url":"\/64.2-1061\/"},{"id":69967,"section_number":"64.2-1062","catch_line":"Asset-backed security","order_by":null,"url":"\/64.2-1062\/"},{"id":72779,"section_number":"64.2-1063","catch_line":"Other financial instrument or arrangement","order_by":null,"url":"\/64.2-1063\/"}],"permalink":{"id":273955,"object_type":"law","relational_id":60866,"identifier":"64.2-1050","token":"64.2\/III\/10.1\/4\/64.2-1050","url":"\/64.2-1050\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/64.2-1050\/","token":"64.2\/III\/10.1\/4\/64.2-1050","dublin_core":{"Title":"Business or other activity conducted by fiduciary","Type":"Text","Format":"text\/html","Identifier":"\u00a7 64.2-1050","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> This section applies to a business or other activity conducted by a fiduciary<\/span> if the fiduciary<\/span> determines that it is in the interests of the beneficiaries to account separately for the business or other activity instead of: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Accounting for the business or other activity as part of the fiduciary<\/span>’s general accounting records<\/span>; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Conducting the business or other activity through an entity defined in subsection A of § 64.2-1048<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> A fiduciary<\/span> may account separately under this section for the transactions of a business or other activity, whether or not assets<\/span> of the business or other activity are segregated from other assets<\/span> held by the fiduciary<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> A fiduciary<\/span> that accounts separately under this section for a business or other activity: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> May determine:\n\t\t\t\ta. The extent to which the net cash receipts of the business or other activity must be retained for: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Working capital; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The acquisition or replacement of fixed assets<\/span>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Other reasonably foreseeable needs of the business or other activity; and\n\t\t\t\t\tb. The extent to which the remaining net cash receipts are accounted for as principal<\/span> or income<\/span> in the fiduciary<\/span>’s general accounting records<\/span> for the trust<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> May make a determination under subdivision 1 separately and differently from the fiduciary<\/span>’s decisions concerning distributions<\/span> of income<\/span> or principal<\/span>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Shall account for the net amount received from the sale of an asset of the business or other activity, other than a sale in the ordinary course of the business or other activity, as principal<\/span> in the fiduciary<\/span>’s general accounting records<\/span> for the trust<\/span>, to the extent the fiduciary<\/span> determines that the net amount received is no longer required in the conduct of the business or other activity. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> Activities for which a fiduciary<\/span> may account separately under this section include: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Retail, manufacturing, service, and other traditional business activities; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Farming; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Raising and selling livestock and other animals; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Managing rental properties; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Extracting minerals, water, and other natural resources; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Growing and cutting timber; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> An activity to which § 64.2-1061<\/a>, 64.2-1062<\/a>, or 64.2-1063<\/a> applies; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> Any other business conducted by the fiduciary<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nBUSINESS OR OTHER ACTIVITY CONDUCTED BY FIDUCIARY (\u00a7 64.2-1050)\n\nA. This section applies to a business or other activity conducted by a fiduciary\nif the fiduciary determines that it is in the interests of the beneficiaries to\naccount separately for the business or other activity instead of:\n\n 1. Accounting for the business or other activity as part of the\n fiduciary’s general accounting records; or\n\n 2. Conducting the business or other activity through an entity defined in\n subsection A of § 64.2-1048.\n\nB. A fiduciary may account separately under this section for the transactions of\na business or other activity, whether or not assets of the business or other\nactivity are segregated from other assets held by the fiduciary.\n\nC. A fiduciary that accounts separately under this section for a business or\nother activity:\n\n 1. May determine:\n \t\t\t\ta. The extent to which the net cash receipts of the business or other\n activity must be retained for:\n\n 1. Working capital;\n\n 2. The acquisition or replacement of fixed assets; and\n\n 3. Other reasonably foreseeable needs of the business or other activity; and\n \t\t\t\t\tb. The extent to which the remaining net cash receipts are accounted\n for as principal or income in the fiduciary’s general accounting\n records for the trust;\n\n 2. May make a determination under subdivision 1 separately and differently\n from the fiduciary’s decisions concerning distributions of income or\n principal; and\n\n 3. Shall account for the net amount received from the sale of an asset of the\n business or other activity, other than a sale in the ordinary course of the\n business or other activity, as principal in the fiduciary’s general\n accounting records for the trust, to the extent the fiduciary determines that\n the net amount received is no longer required in the conduct of the business\n or other activity.\n\nD. Activities for which a fiduciary may account separately under this section\ninclude:\n\n 1. Retail, manufacturing, service, and other traditional business activities;\n\n 2. Farming;\n\n 3. Raising and selling livestock and other animals;\n\n 4. Managing rental properties;\n\n 5. Extracting minerals, water, and other natural resources;\n\n 6. Growing and cutting timber;\n\n 7. An activity to which § 64.2-1061, 64.2-1062, or 64.2-1063 applies; and\n\n 8. Any other business conducted by the fiduciary.\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}}