{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/64.2-1056.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/64.2-1056.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/64.2-1056.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/64.2-1056.html"}],"law_id":81654,"edition_id":1,"section_id":81654,"structure_id":15635,"section_number":"64.2-1056","catch_line":"Deferred compensation, annuity, or similar payment","history":"2022, c. 354.","full_text":"A\n\nAs used in this section:\n\t\t\t“Internal income of a separate fund” means the amount determined under subsection B.\n\t\t\t“Marital trust” means a trust:1\n\nOf which the settlor’s surviving spouse is the only current income beneficiary and is entitled to a distribution of all of the current net income of the trust; and2\n\nThat qualifies for a marital deduction with respect to the settlor’s estate under § 2056 of the Internal Revenue Code of 1986, as amended, because:\n\t\t\t\ta. An election to qualify for a marital deduction under § 2056(b)(7) of the Internal Revenue Code of 1986, as amended, has been made; or\n\t\t\t\tb. The trust qualifies for a marital deduction under § 2056(b)(5) of the Internal Revenue Code of 1986, as amended.\n\t\t\t\t“Payment” means an amount a fiduciary may receive over a fixed number of years or during the life of one or more individuals because of services rendered or property transferred to the payor in exchange for future amounts the fiduciary may receive. “Payment” includes an amount received in money or property from the payor’s general assets or from a separate fund created by the payor.\n\t\t\t\t“Separate fund” includes a private or commercial annuity, an individual retirement account, and a pension, profit-sharing, stock-bonus, or stock-ownership plan.B\n\nFor each accounting period, the following rules apply to a separate fund:1\n\nThe fiduciary shall determine the internal income of the separate fund as if the separate fund were a trust subject to this chapter.2\n\nIf the fiduciary cannot determine the internal income of the separate fund under subdivision 1, the internal income of the separate fund is deemed to equal four percent of the value of the separate fund, according to the most recent statement of value preceding the beginning of the accounting period.3\n\nIf the fiduciary cannot determine the value of the separate fund under subdivision 2, the value of the separate fund is deemed to equal the present value of the expected future payments, as determined under § 7520 of the Internal Revenue Code of 1986, as amended, for the month preceding the beginning of the accounting period for which the computation is made.C\n\nA fiduciary shall allocate a payment received from a separate fund during an accounting period to income, to the extent of the internal income of the separate fund during the period, and the balance to principal.D\n\nThe fiduciary of a marital trust shall:1\n\nWithdraw from a separate fund the amount the current income beneficiary of the trust requests the fiduciary to withdraw, not greater than the amount by which the internal income of the separate fund during the accounting period exceeds the amount the fiduciary otherwise receives from the separate fund during the period;2\n\nTransfer from principal to income the amount the current income beneficiary requests the fiduciary to transfer, not greater than the amount by which the internal income of the separate fund during the period exceeds the amount the fiduciary receives from the separate fund during the period after the application of subdivision 1; and3\n\nDistribute to the current income beneficiary as income:\n\t\t\t\ta. The amount of the internal income of the separate fund received or withdrawn during the period; and\n\t\t\t\tb. The amount transferred from principal to income under subdivision 2.E\n\nFor a trust, other than a marital trust, of which one or more current income beneficiaries are entitled to a distribution of all of the current net income, the fiduciary shall transfer from principal to income the amount by which the internal income of a separate fund during the accounting period exceeds the amount the fiduciary receives from the separate fund during the period.","order_by":null,"text":{"0":{"id":292441,"text":"As used in this section:\n\t\t\t“Internal income of a separate fund” means the amount determined under subsection B.\n\t\t\t“Marital trust” means a trust:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":292442,"text":"Of which the settlor’s surviving spouse is the only current income beneficiary and is entitled to a distribution of all of the current net income of the trust; and","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":292443,"text":"That qualifies for a marital deduction with respect to the settlor’s estate under § 2056 of the Internal Revenue Code of 1986, as amended, because:\n\t\t\t\ta. An election to qualify for a marital deduction under § 2056(b)(7) of the Internal Revenue Code of 1986, as amended, has been made; or\n\t\t\t\tb. The trust qualifies for a marital deduction under § 2056(b)(5) of the Internal Revenue Code of 1986, as amended.\n\t\t\t\t“Payment” means an amount a fiduciary may receive over a fixed number of years or during the life of one or more individuals because of services rendered or property transferred to the payor in exchange for future amounts the fiduciary may receive. “Payment” includes an amount received in money or property from the payor’s general assets or from a separate fund created by the payor.\n\t\t\t\t“Separate fund” includes a private or commercial annuity, an individual retirement account, and a pension, profit-sharing, stock-bonus, or stock-ownership plan.","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"B"},"3":{"id":292444,"text":"For each accounting period, the following rules apply to a separate fund:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A2","next_prefix":"B1"},"4":{"id":292445,"text":"The fiduciary shall determine the internal income of the separate fund as if the separate fund were a trust subject to this chapter.","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"5":{"id":292446,"text":"If the fiduciary cannot determine the internal income of the separate fund under subdivision 1, the internal income of the separate fund is deemed to equal four percent of the value of the separate fund, according to the most recent statement of value preceding 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":"B3"},"6":{"id":292447,"text":"If the fiduciary cannot determine the value of the separate fund under subdivision 2, the value of the separate fund is deemed to equal the present value of the expected future payments, as determined under § 7520 of the Internal Revenue Code of 1986, as amended, for the month preceding the beginning of the accounting period for which the computation is made.","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"C"},"7":{"id":292448,"text":"A fiduciary shall allocate a payment received from a separate fund during an accounting period to income, to the extent of the internal income of the separate fund during the period, and the balance to principal.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B3","next_prefix":"D"},"8":{"id":292449,"text":"The fiduciary of a marital trust shall:","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"D1"},"9":{"id":292450,"text":"Withdraw from a separate fund the amount the current income beneficiary of the trust requests the fiduciary to withdraw, not greater than the amount by which the internal income of the separate fund during the accounting period exceeds the amount the fiduciary otherwise receives from the separate fund during the period;","type":"section","prefixes":["D","1"],"prefix":"1","entire_prefix":"D1","prefix_anchor":"D1","level":2,"prior_prefix":"D","next_prefix":"D2"},"10":{"id":292451,"text":"Transfer from principal to income the amount the current income beneficiary requests the fiduciary to transfer, not greater than the amount by which the internal income of the separate fund during the period exceeds the amount the fiduciary receives from the separate fund during the period after the application of subdivision 1; and","type":"section","prefixes":["D","2"],"prefix":"2","entire_prefix":"D2","prefix_anchor":"D2","level":2,"prior_prefix":"D1","next_prefix":"D3"},"11":{"id":292452,"text":"Distribute to the current income beneficiary as income:\n\t\t\t\ta. The amount of the internal income of the separate fund received or withdrawn during the period; and\n\t\t\t\tb. The amount transferred from principal to income under subdivision 2.","type":"section","prefixes":["D","3"],"prefix":"3","entire_prefix":"D3","prefix_anchor":"D3","level":2,"prior_prefix":"D2","next_prefix":"E"},"12":{"id":292453,"text":"For a trust, other than a marital trust, of which one or more current income beneficiaries are entitled to a distribution of all of the current net income, the fiduciary shall transfer from principal to income the amount by which the internal income of a separate fund during the accounting period exceeds the amount the fiduciary receives from the separate fund during the period.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D3"}},"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}],"previous_section":{"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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/64.2-1056\/","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":64572,"section_number":"64.2-1053","catch_line":"Receipt on obligation to be paid in money","order_by":null,"url":"\/64.2-1053\/"},{"id":54443,"section_number":"64.2-1054","catch_line":"Insurance policy or contract","order_by":null,"url":"\/64.2-1054\/"},{"id":81730,"section_number":"64.2-1055","catch_line":"Insubstantial allocation not required","order_by":null,"url":"\/64.2-1055\/"},{"id":70724,"section_number":"64.2-1057","catch_line":"Liquidating asset","order_by":null,"url":"\/64.2-1057\/"}],"refers_to":false,"permalink":{"id":273983,"object_type":"law","relational_id":81654,"identifier":"64.2-1056","token":"64.2\/III\/10.1\/6\/64.2-1056","url":"\/64.2-1056\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/64.2-1056\/","token":"64.2\/III\/10.1\/6\/64.2-1056","dublin_core":{"Title":"Deferred compensation, annuity, or similar payment","Type":"Text","Format":"text\/html","Identifier":"\u00a7 64.2-1056","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> As used in this section:\n\t\t\t“Internal income of a separate fund<\/span>” means the amount determined under subsection B.\n\t\t\t“Marital trust<\/span>” means a trust: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Of which the settlor<\/span>’s surviving spouse is the only current income beneficiary<\/span> and is entitled to a distribution<\/span> of all of the current net income<\/span> of the trust; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> That qualifies for a marital deduction with respect to the settlor<\/span>’s estate<\/span> under § 2056 of the Internal Revenue Code of 1986, as amended, because:\n\t\t\t\ta. An election to qualify for a marital deduction under § 2056(b)(7) of the Internal Revenue Code of 1986, as amended, has been made; or\n\t\t\t\tb. The trust qualifies for a marital deduction under § 2056(b)(5) of the Internal Revenue Code of 1986, as amended.\n\t\t\t\t“Payment<\/span>” means an amount a fiduciary<\/span> may receive over a fixed number of years or during the life of one or more individuals because of services rendered or property transferred to the payor in exchange for future amounts the fiduciary<\/span> may receive. “Payment<\/span>” includes an amount received in money or property from the payor’s general assets<\/span> or from a separate fund created by the payor.\n\t\t\t\t“Separate fund” includes a private or commercial annuity, an individual retirement account, and a pension, profit-sharing, stock-bonus, or stock-ownership plan. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> For each accounting period<\/span>, the following rules apply to a separate fund: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The fiduciary<\/span> shall determine the internal income of the separate fund as if the separate fund were a trust subject to this chapter. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> If the fiduciary<\/span> cannot determine the internal income of the separate fund under subdivision 1, the internal income of the separate fund is deemed to equal four percent of the value<\/span> of the separate fund, according to the most recent statement of value<\/span> preceding the beginning of the accounting period<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> If the fiduciary<\/span> cannot determine the value<\/span> of the separate fund under subdivision 2, the value<\/span> of the separate fund is deemed to equal the present value<\/span> of the expected future payments<\/span>, as determined under § 7520 of the Internal Revenue Code of 1986, as amended, for the month preceding the beginning of the accounting period<\/span> for which the computation is made. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> A fiduciary<\/span> shall allocate a payment<\/span> received from a separate fund during an accounting period<\/span> to income, to the extent of the internal income of the separate fund during the period, and the balance to principal<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The fiduciary<\/span> of a marital trust<\/span> shall: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Withdraw from a separate fund the amount the current income beneficiary<\/span> of the trust requests the fiduciary<\/span> to withdraw, not greater than the amount by which the internal income of the separate fund during the accounting period<\/span> exceeds the amount the fiduciary<\/span> otherwise receives from the separate fund during the period; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Transfer from principal<\/span> to income the amount the current income beneficiary<\/span> requests the fiduciary<\/span> to transfer, not greater than the amount by which the internal income of the separate fund during the period exceeds the amount the fiduciary<\/span> receives from the separate fund during the period after the application of subdivision 1; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Distribute to the current income beneficiary<\/span> as income:\n\t\t\t\ta. The amount of the internal income of the separate fund received or withdrawn during the period; and\n\t\t\t\tb. The amount transferred from principal<\/span> to income under subdivision 2. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> For a trust, other than a marital trust<\/span>, of which one or more current income beneficiaries are entitled to a distribution<\/span> of all of the current net income<\/span>, the fiduciary<\/span> shall transfer from principal<\/span> to income the amount by which the internal income of a separate fund<\/span> during the accounting period<\/span> exceeds the amount the fiduciary<\/span> receives from the separate fund during the period. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nDEFERRED COMPENSATION, ANNUITY, OR SIMILAR PAYMENT (\u00a7 64.2-1056)\n\nA. As used in this section:\n\t\t\t“Internal income of a separate fund” means the amount determined\nunder subsection B.\n\t\t\t“Marital trust” means a trust:\n\n 1. Of which the settlor’s surviving spouse is the only current income\n beneficiary and is entitled to a distribution of all of the current net income\n of the trust; and\n\n 2. That qualifies for a marital deduction with respect to the settlor’s\n estate under § 2056 of the Internal Revenue Code of 1986, as amended,\n because:\n \t\t\t\ta. An election to qualify for a marital deduction under § 2056(b)(7)\n of the Internal Revenue Code of 1986, as amended, has been made; or\n \t\t\t\tb. The trust qualifies for a marital deduction under § 2056(b)(5) of\n the Internal Revenue Code of 1986, as amended.\n \t\t\t\t“Payment” means an amount a fiduciary may receive over a fixed\n number of years or during the life of one or more individuals because of\n services rendered or property transferred to the payor in exchange for future\n amounts the fiduciary may receive. “Payment” includes an amount\n received in money or property from the payor’s general assets or from a\n separate fund created by the payor.\n \t\t\t\t“Separate fund” includes a private or commercial annuity, an\n individual retirement account, and a pension, profit-sharing, stock-bonus, or\n stock-ownership plan.\n\nB. For each accounting period, the following rules apply to a separate fund:\n\n 1. The fiduciary shall determine the internal income of the separate fund as\n if the separate fund were a trust subject to this chapter.\n\n 2. If the fiduciary cannot determine the internal income of the separate fund\n under subdivision 1, the internal income of the separate fund is deemed to\n equal four percent of the value of the separate fund, according to the most\n recent statement of value preceding the beginning of the accounting period.\n\n 3. If the fiduciary cannot determine the value of the separate fund under\n subdivision 2, the value of the separate fund is deemed to equal the present\n value of the expected future payments, as determined under § 7520 of the\n Internal Revenue Code of 1986, as amended, for the month preceding the\n beginning of the accounting period for which the computation is made.\n\nC. A fiduciary shall allocate a payment received from a separate fund during an\naccounting period to income, to the extent of the internal income of the\nseparate fund during the period, and the balance to principal.\n\nD. The fiduciary of a marital trust shall:\n\n 1. Withdraw from a separate fund the amount the current income beneficiary of\n the trust requests the fiduciary to withdraw, not greater than the amount by\n which the internal income of the separate fund during the accounting period\n exceeds the amount the fiduciary otherwise receives from the separate fund\n during the period;\n\n 2. Transfer from principal to income the amount the current income beneficiary\n requests the fiduciary to transfer, not greater than the amount by which the\n internal income of the separate fund during the period exceeds the amount the\n fiduciary receives from the separate fund during the period after the\n application of subdivision 1; and\n\n 3. Distribute to the current income beneficiary as income:\n \t\t\t\ta. The amount of the internal income of the separate fund received or\n withdrawn during the period; and\n \t\t\t\tb. The amount transferred from principal to income under subdivision 2.\n\nE. For a trust, other than a marital trust, of which one or more current income\nbeneficiaries are entitled to a distribution of all of the current net income,\nthe fiduciary shall transfer from principal to income the amount by which the\ninternal income of a separate fund during the accounting period exceeds the\namount the fiduciary receives from the separate fund during the period.\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}}