{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/64.2-1055.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/64.2-1055.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/64.2-1055.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/64.2-1055.html"}],"law_id":81730,"edition_id":1,"section_id":81730,"structure_id":15635,"section_number":"64.2-1055","catch_line":"Insubstantial allocation not required","history":"2022, c. 354.","full_text":"A\n\nIf a fiduciary determines that an allocation between income and principal required by § 64.2-1056, 64.2-1057, 64.2-1058, 64.2-1059, or 64.2-1062 is insubstantial, the fiduciary may allocate the entire amount to principal, unless subsection E of § 64.2-1038 applies to the allocation.B\n\nA fiduciary may presume an allocation is insubstantial under subsection A if:1\n\nThe amount of the allocation would increase or decrease net income in an accounting period, as determined before the allocation, by less than 10 percent; and2\n\nThe asset producing the receipt to be allocated has a fair market value less than 10 percent of the total fair market value of the assets owned or held by the fiduciary at the beginning of the accounting period.C\n\nThe power to make a determination under subsection A may be:1\n\nExercised by a co-fiduciary in the manner described in subsection F of § 64.2-1038; or2\n\nReleased or delegated for a reason described in subsection G of § 64.2-1038 and in the manner described in subsection H of § 64.2-1038.","order_by":null,"text":{"0":{"id":292758,"text":"If a fiduciary determines that an allocation between income and principal required by § 64.2-1056, 64.2-1057, 64.2-1058, 64.2-1059, or 64.2-1062 is insubstantial, the fiduciary may allocate the entire amount to principal, unless subsection E of § 64.2-1038 applies to the allocation.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":292759,"text":"A fiduciary may presume an allocation is insubstantial under subsection A if:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":292760,"text":"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; and","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":292761,"text":"The asset producing the receipt to be allocated has a fair market value less than 10 percent of the total fair market value of the assets owned or held by the fiduciary at the beginning of the accounting period.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"C"},"4":{"id":292762,"text":"The power to make a determination under subsection A may be:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B2","next_prefix":"C1"},"5":{"id":292763,"text":"Exercised by a co-fiduciary in the manner described in subsection F of § 64.2-1038; or","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"6":{"id":292764,"text":"Released or delegated for a reason described in subsection G of § 64.2-1038 and in the manner described in subsection H of § 64.2-1038.","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1"}},"ancestry":[{"id":15635,"edition_id":1,"name":"Allocation of Receipts: Receipts Normally Apportioned","identifier":"6","label":"article","depth":4,"order_by":1,"parent_id":13478,"metadata":{},"date_created":"2026-06-26 03:57:10","date_modified":"2026-06-26 03:57:10","permalink":{"id":273977,"object_type":"structure","relational_id":15635,"identifier":"6","token":"64.2\/III\/10.1\/6","url":"\/64.2\/III\/10.1\/6\/","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":81730,"structure_id":15635,"section_number":"64.2-1055","catch_line":"Insubstantial allocation not required","url":"\/64.2-1055\/","token":"64.2\/III\/10.1\/6\/64.2-1055","metadata":false},{"id":81654,"structure_id":15635,"section_number":"64.2-1056","catch_line":"Deferred compensation, annuity, or similar payment","url":"\/64.2-1056\/","token":"64.2\/III\/10.1\/6\/64.2-1056","metadata":false},{"id":70724,"structure_id":15635,"section_number":"64.2-1057","catch_line":"Liquidating asset","url":"\/64.2-1057\/","token":"64.2\/III\/10.1\/6\/64.2-1057","metadata":false},{"id":64796,"structure_id":15635,"section_number":"64.2-1058","catch_line":"Minerals, water, and other natural resources","url":"\/64.2-1058\/","token":"64.2\/III\/10.1\/6\/64.2-1058","metadata":false},{"id":59724,"structure_id":15635,"section_number":"64.2-1059","catch_line":"Timber","url":"\/64.2-1059\/","token":"64.2\/III\/10.1\/6\/64.2-1059","metadata":false},{"id":85155,"structure_id":15635,"section_number":"64.2-1060","catch_line":"Marital deduction property not productive of income","url":"\/64.2-1060\/","token":"64.2\/III\/10.1\/6\/64.2-1060","metadata":false},{"id":67825,"structure_id":15635,"section_number":"64.2-1061","catch_line":"Derivative or option","url":"\/64.2-1061\/","token":"64.2\/III\/10.1\/6\/64.2-1061","metadata":false},{"id":69967,"structure_id":15635,"section_number":"64.2-1062","catch_line":"Asset-backed security","url":"\/64.2-1062\/","token":"64.2\/III\/10.1\/6\/64.2-1062","metadata":false},{"id":72779,"structure_id":15635,"section_number":"64.2-1063","catch_line":"Other financial instrument or arrangement","url":"\/64.2-1063\/","token":"64.2\/III\/10.1\/6\/64.2-1063","metadata":false}],"next_section":{"id":81654,"structure_id":15635,"section_number":"64.2-1056","catch_line":"Deferred compensation, annuity, or similar payment","url":"\/64.2-1056\/","token":"64.2\/III\/10.1\/6\/64.2-1056","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/64.2-1055\/","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":81918,"section_number":"64.2-1033","catch_line":"Definitions","order_by":null,"url":"\/64.2-1033\/"},{"id":80594,"section_number":"64.2-1038","catch_line":"Fiduciary's power to adjust","order_by":null,"url":"\/64.2-1038\/"},{"id":86435,"section_number":"64.2-1051","catch_line":"Principal receipts","order_by":null,"url":"\/64.2-1051\/"},{"id":68355,"section_number":"64.2-1071","catch_line":"Determination and distribution of net income","order_by":null,"url":"\/64.2-1071\/"}],"refers_to":[{"id":80594,"section_number":"64.2-1038","catch_line":"Fiduciary's power to adjust","order_by":null,"url":"\/64.2-1038\/"},{"id":81654,"section_number":"64.2-1056","catch_line":"Deferred compensation, annuity, or similar payment","order_by":null,"url":"\/64.2-1056\/"},{"id":70724,"section_number":"64.2-1057","catch_line":"Liquidating asset","order_by":null,"url":"\/64.2-1057\/"},{"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":69967,"section_number":"64.2-1062","catch_line":"Asset-backed security","order_by":null,"url":"\/64.2-1062\/"}],"permalink":{"id":273979,"object_type":"law","relational_id":81730,"identifier":"64.2-1055","token":"64.2\/III\/10.1\/6\/64.2-1055","url":"\/64.2-1055\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/64.2-1055\/","token":"64.2\/III\/10.1\/6\/64.2-1055","dublin_core":{"Title":"Insubstantial allocation not required","Type":"Text","Format":"text\/html","Identifier":"\u00a7 64.2-1055","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> If a fiduciary<\/span> determines that an allocation between income<\/span> and principal<\/span> required by § 64.2-1056<\/a>, 64.2-1057<\/a>, 64.2-1058<\/a>, 64.2-1059<\/a>, or 64.2-1062<\/a> is insubstantial, the fiduciary<\/span> may allocate the entire amount to principal<\/span>, unless subsection E of § 64.2-1038<\/a> applies to the allocation. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> A fiduciary<\/span> may presume an allocation is insubstantial under subsection A if: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The amount of the allocation would increase or decrease net income<\/span> in an accounting period<\/span>, as determined before the allocation, by less than 10 percent; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The asset producing the receipt to be allocated has a fair market value<\/span> less than 10 percent of the total fair market value<\/span> of the assets<\/span> owned or held by the fiduciary<\/span> at the beginning of the accounting period<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The power to make a determination under subsection A may be: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Exercised by a co-fiduciary<\/span> in the manner described in subsection F of § 64.2-1038<\/a>; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Released or delegated for a reason described in subsection G of § 64.2-1038<\/a> and in the manner described in subsection H of § 64.2-1038<\/a>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nINSUBSTANTIAL ALLOCATION NOT REQUIRED (\u00a7 64.2-1055)\n\nA. If a fiduciary determines that an allocation between income and principal\nrequired by § 64.2-1056, 64.2-1057, 64.2-1058, 64.2-1059, or 64.2-1062 is\ninsubstantial, the fiduciary may allocate the entire amount to principal, unless\nsubsection E of § 64.2-1038 applies to the allocation.\n\nB. A fiduciary may presume an allocation is insubstantial under subsection A if:\n\n 1. The amount of the allocation would increase or decrease net income in an\n accounting period, as determined before the allocation, by less than 10\n percent; and\n\n 2. The asset producing the receipt to be allocated has a fair market value\n less than 10 percent of the total fair market value of the assets owned or\n held by the fiduciary at the beginning of the accounting period.\n\nC. The power to make a determination under subsection A may be:\n\n 1. Exercised by a co-fiduciary in the manner described in subsection F of\n § 64.2-1038; or\n\n 2. Released or delegated for a reason described in subsection G of §\n 64.2-1038 and in the manner described in subsection H of § 64.2-1038.\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}}