{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/64.2-1065.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/64.2-1065.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/64.2-1065.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/64.2-1065.html"}],"law_id":68322,"edition_id":1,"section_id":68322,"structure_id":16288,"section_number":"64.2-1065","catch_line":"Disbursement from principal","history":"2022, c. 354.","full_text":"A\n\nSubject to \u00a7 64.2-1068, and except as otherwise provided in subdivision C 2 of \u00a7 64.2-1071, a fiduciary shall disburse from principal:1\n\nThe balance of the disbursements described in subdivisions 1 and 3 of § 64.2-1064, after application of subdivision 2 of § 64.2-1064;2\n\nThe fiduciary’s compensation calculated on principal as a fee for acceptance, distribution, or termination;3\n\nA payment of an expense to prepare for or execute a sale or other disposition of property;4\n\nA payment on the principal of a trust debt;5\n\nA payment of an expense of an accounting, judicial or nonjudicial proceeding, or other matter that involves primarily principal, including a proceeding to construe the terms of the trust or protect property;6\n\nA payment of a premium for insurance, including title insurance, not described in subdivision 4 of § 64.2-1064, of which the fiduciary is the owner and beneficiary;7\n\nA payment of an estate or inheritance tax or other tax imposed because of the death of a decedent, including penalties, apportioned to the trust; and8\n\nA payment:\n\t\t\t\ta. Related to environmental matters, including:1\n\nReclamation;2\n\nAssessing environmental conditions;3\n\nRemedying and removing environmental contamination;4\n\nMonitoring remedial activities and the release of substances;5\n\nPreventing future releases of substances;6\n\nCollecting amounts from persons liable or potentially liable for the costs of activities described in subdivisions (1) through (5);7\n\nPenalties imposed under environmental laws or regulations;8\n\nOther actions to comply with environmental laws or regulations;9\n\nStatutory or common law claims by third parties; and10\n\nDefending claims based on environmental matters; and\n\t\t\t\t\tb. For a premium for insurance for matters described in subdivision a.B\n\nIf a principal asset is encumbered with an obligation that requires income from the asset to be paid directly to a creditor, the fiduciary shall transfer from principal to income an amount equal to the income paid to the creditor in reduction of the principal balance of the obligation.C\n\nNotwithstanding any other provision of law and unless the terms of the trust provide to the contrary, a trustee may pay from the principal of the trust from time to time (i) the federal or state income taxes, or both, imposed upon the settlor on income of the trust that is not distributed to the settlor or (ii) such amounts that are required to reimburse the settlor for any federal or state income taxes, or both, imposed on the settlor on income of the trust that is not distributed to the settlor. The trustee shall not have the power to make payments pursuant to this subsection with respect to any trust where a charitable income, estate, or gift tax deduction has been allowed, in whole or in part, for the contributions to such trust if the exercise of such power would limit or reduce the amount of such deduction.","order_by":null,"text":{"0":{"id":247210,"text":"Subject to \u00a7 64.2-1068, and except as otherwise provided in subdivision C 2 of \u00a7 64.2-1071, a fiduciary shall disburse from principal:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":247211,"text":"The balance of the disbursements described in subdivisions 1 and 3 of § 64.2-1064, after application of subdivision 2 of § 64.2-1064;","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":247212,"text":"The fiduciary’s compensation calculated on principal as a fee for acceptance, distribution, or termination;","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":247213,"text":"A payment of an expense to prepare for or execute a sale or other disposition of property;","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"A4"},"4":{"id":247214,"text":"A payment on the principal of a trust debt;","type":"section","prefixes":["A","4"],"prefix":"4","entire_prefix":"A4","prefix_anchor":"A4","level":2,"prior_prefix":"A3","next_prefix":"A5"},"5":{"id":247215,"text":"A payment of an expense of an accounting, judicial or nonjudicial proceeding, or other matter that involves primarily principal, including a proceeding to construe the terms of the trust or protect property;","type":"section","prefixes":["A","5"],"prefix":"5","entire_prefix":"A5","prefix_anchor":"A5","level":2,"prior_prefix":"A4","next_prefix":"A6"},"6":{"id":247216,"text":"A payment of a premium for insurance, including title insurance, not described in subdivision 4 of § 64.2-1064, of which the fiduciary is the owner and beneficiary;","type":"section","prefixes":["A","6"],"prefix":"6","entire_prefix":"A6","prefix_anchor":"A6","level":2,"prior_prefix":"A5","next_prefix":"A7"},"7":{"id":247217,"text":"A payment of an estate or inheritance tax or other tax imposed because of the death of a decedent, including penalties, apportioned to the trust; and","type":"section","prefixes":["A","7"],"prefix":"7","entire_prefix":"A7","prefix_anchor":"A7","level":2,"prior_prefix":"A6","next_prefix":"A8"},"8":{"id":247218,"text":"A payment:\n\t\t\t\ta. Related to environmental matters, including:","type":"section","prefixes":["A","8"],"prefix":"8","entire_prefix":"A8","prefix_anchor":"A8","level":2,"prior_prefix":"A7","next_prefix":"A81"},"9":{"id":247219,"text":"Reclamation;","type":"section","prefixes":["A","8","1"],"prefix":"1","entire_prefix":"A81","prefix_anchor":"A81","level":3,"prior_prefix":"A8","next_prefix":"A82"},"10":{"id":247220,"text":"Assessing environmental conditions;","type":"section","prefixes":["A","8","2"],"prefix":"2","entire_prefix":"A82","prefix_anchor":"A82","level":3,"prior_prefix":"A81","next_prefix":"A83"},"11":{"id":247221,"text":"Remedying and removing environmental contamination;","type":"section","prefixes":["A","8","3"],"prefix":"3","entire_prefix":"A83","prefix_anchor":"A83","level":3,"prior_prefix":"A82","next_prefix":"A84"},"12":{"id":247222,"text":"Monitoring remedial activities and the release of substances;","type":"section","prefixes":["A","8","4"],"prefix":"4","entire_prefix":"A84","prefix_anchor":"A84","level":3,"prior_prefix":"A83","next_prefix":"A85"},"13":{"id":247223,"text":"Preventing future releases of substances;","type":"section","prefixes":["A","8","5"],"prefix":"5","entire_prefix":"A85","prefix_anchor":"A85","level":3,"prior_prefix":"A84","next_prefix":"A86"},"14":{"id":247224,"text":"Collecting amounts from persons liable or potentially liable for the costs of activities described in subdivisions (1) through (5);","type":"section","prefixes":["A","8","6"],"prefix":"6","entire_prefix":"A86","prefix_anchor":"A86","level":3,"prior_prefix":"A85","next_prefix":"A87"},"15":{"id":247225,"text":"Penalties imposed under environmental laws or regulations;","type":"section","prefixes":["A","8","7"],"prefix":"7","entire_prefix":"A87","prefix_anchor":"A87","level":3,"prior_prefix":"A86","next_prefix":"A88"},"16":{"id":247226,"text":"Other actions to comply with environmental laws or regulations;","type":"section","prefixes":["A","8","8"],"prefix":"8","entire_prefix":"A88","prefix_anchor":"A88","level":3,"prior_prefix":"A87","next_prefix":"A89"},"17":{"id":247227,"text":"Statutory or common law claims by third parties; and","type":"section","prefixes":["A","8","9"],"prefix":"9","entire_prefix":"A89","prefix_anchor":"A89","level":3,"prior_prefix":"A88","next_prefix":"A810"},"18":{"id":247228,"text":"Defending claims based on environmental matters; and\n\t\t\t\t\tb. For a premium for insurance for matters described in subdivision a.","type":"section","prefixes":["A","8","10"],"prefix":"10","entire_prefix":"A810","prefix_anchor":"A810","level":3,"prior_prefix":"A89","next_prefix":"B"},"19":{"id":247229,"text":"If a principal asset is encumbered with an obligation that requires income from the asset to be paid directly to a creditor, the fiduciary shall transfer from principal to income an amount equal to the income paid to the creditor in reduction of the principal balance of the obligation.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A810","next_prefix":"C"},"20":{"id":247230,"text":"Notwithstanding any other provision of law and unless the terms of the trust provide to the contrary, a trustee may pay from the principal of the trust from time to time (i) the federal or state income taxes, or both, imposed upon the settlor on income of the trust that is not distributed to the settlor or (ii) such amounts that are required to reimburse the settlor for any federal or state income taxes, or both, imposed on the settlor on income of the trust that is not distributed to the settlor. The trustee shall not have the power to make payments pursuant to this subsection with respect to any trust where a charitable income, estate, or gift tax deduction has been allowed, in whole or in part, for the contributions to such trust if the exercise of such power would limit or reduce the amount of such deduction.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B"}},"ancestry":[{"id":16288,"edition_id":1,"name":"Allocation of Disbursements","identifier":"7","label":"article","depth":4,"order_by":1,"parent_id":13478,"metadata":{},"date_created":"2026-06-26 04:12:38","date_modified":"2026-06-26 04:12:38","permalink":{"id":274015,"object_type":"structure","relational_id":16288,"identifier":"7","token":"64.2\/III\/10.1\/7","url":"\/64.2\/III\/10.1\/7\/","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":66204,"structure_id":16288,"section_number":"64.2-1064","catch_line":"Disbursement from income","url":"\/64.2-1064\/","token":"64.2\/III\/10.1\/7\/64.2-1064","metadata":false},{"id":68322,"structure_id":16288,"section_number":"64.2-1065","catch_line":"Disbursement from principal","url":"\/64.2-1065\/","token":"64.2\/III\/10.1\/7\/64.2-1065","metadata":false},{"id":85159,"structure_id":16288,"section_number":"64.2-1066","catch_line":"Transfer from income to principal for depreciation","url":"\/64.2-1066\/","token":"64.2\/III\/10.1\/7\/64.2-1066","metadata":false},{"id":66661,"structure_id":16288,"section_number":"64.2-1067","catch_line":"Reimbursement of income from principal","url":"\/64.2-1067\/","token":"64.2\/III\/10.1\/7\/64.2-1067","metadata":false},{"id":83008,"structure_id":16288,"section_number":"64.2-1068","catch_line":"Reimbursement of principal from income","url":"\/64.2-1068\/","token":"64.2\/III\/10.1\/7\/64.2-1068","metadata":false},{"id":77952,"structure_id":16288,"section_number":"64.2-1069","catch_line":"Income taxes","url":"\/64.2-1069\/","token":"64.2\/III\/10.1\/7\/64.2-1069","metadata":false},{"id":85750,"structure_id":16288,"section_number":"64.2-1070","catch_line":"Adjustment between income and principal because of taxes","url":"\/64.2-1070\/","token":"64.2\/III\/10.1\/7\/64.2-1070","metadata":false}],"previous_section":{"id":66204,"structure_id":16288,"section_number":"64.2-1064","catch_line":"Disbursement from income","url":"\/64.2-1064\/","token":"64.2\/III\/10.1\/7\/64.2-1064","metadata":false},"next_section":{"id":85159,"structure_id":16288,"section_number":"64.2-1066","catch_line":"Transfer from income to principal for depreciation","url":"\/64.2-1066\/","token":"64.2\/III\/10.1\/7\/64.2-1066","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/64.2-1065\/","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":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":66204,"section_number":"64.2-1064","catch_line":"Disbursement from income","order_by":null,"url":"\/64.2-1064\/"},{"id":83008,"section_number":"64.2-1068","catch_line":"Reimbursement of principal from income","order_by":null,"url":"\/64.2-1068\/"},{"id":68355,"section_number":"64.2-1071","catch_line":"Determination and distribution of net income","order_by":null,"url":"\/64.2-1071\/"}],"permalink":{"id":274021,"object_type":"law","relational_id":68322,"identifier":"64.2-1065","token":"64.2\/III\/10.1\/7\/64.2-1065","url":"\/64.2-1065\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/64.2-1065\/","token":"64.2\/III\/10.1\/7\/64.2-1065","dublin_core":{"Title":"Disbursement from principal","Type":"Text","Format":"text\/html","Identifier":"\u00a7 64.2-1065","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Subject to \u00a7 64.2-1068<\/a>, and except as otherwise provided in subdivision C 2 of \u00a7 64.2-1071<\/a>, a fiduciary<\/span> shall disburse from principal<\/span>: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The balance of the disbursements described in subdivisions 1 and 3 of § 64.2-1064<\/a>, after application of subdivision 2 of § 64.2-1064<\/a>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The fiduciary<\/span>’s compensation calculated on principal<\/span> as a fee for acceptance, distribution<\/span>, or termination; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> A payment of an expense to prepare for or execute a sale or other disposition<\/span> of property; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> A payment on the principal<\/span> of a trust<\/span> debt; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> A payment of an expense of an accounting, judicial or nonjudicial proceeding, or other matter that involves primarily principal<\/span>, including a proceeding to construe<\/span> the terms of the trust<\/span> or protect property; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> A payment of a premium for insurance, including title insurance, not described in subdivision 4 of § 64.2-1064<\/a>, of which the fiduciary<\/span> is the owner and beneficiary; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> A payment of an estate<\/span> or inheritance tax or other tax imposed because of the death of a decedent, including penalties, apportioned to the trust<\/span>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> A payment:\n\t\t\t\ta. Related to environmental matters, including: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

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

2.<\/span> Assessing environmental conditions; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Remedying and removing environmental contamination; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Monitoring remedial activities and the release of substances; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Preventing future releases of substances; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Collecting amounts from persons<\/span> liable or potentially liable for the costs of activities described in subdivisions (1) through (5); <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> Penalties imposed under environmental laws<\/span> or regulations; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> Other actions to comply with environmental laws<\/span> or regulations; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

9.<\/span> Statutory or common law<\/span> claims by third parties; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

10.<\/span> Defending claims based on environmental matters; and\n\t\t\t\t\tb. For a premium for insurance for matters described in subdivision a. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> If a principal<\/span> asset is encumbered with an obligation that requires income<\/span> from the asset to be paid directly to a creditor<\/span>, the fiduciary<\/span> shall transfer from principal<\/span> to income<\/span> an amount equal to the income<\/span> paid to the creditor<\/span> in reduction of the principal<\/span> balance of the obligation. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Notwithstanding any other provision of law and unless the terms of the trust<\/span> provide to the contrary, a trustee<\/span> may pay from the principal<\/span> of the trust<\/span> from time to time (i) the federal or state income<\/span> taxes, or both, imposed upon the settlor<\/span> on income<\/span> of the trust<\/span> that is not distributed to the settlor<\/span> or (ii) such amounts that are required to reimburse the settlor<\/span> for any federal or state income<\/span> taxes, or both, imposed on the settlor<\/span> on income<\/span> of the trust<\/span> that is not distributed to the settlor<\/span>. The trustee<\/span> shall not have the power to make payments pursuant to this subsection with respect to any trust<\/span> where a charitable income<\/span>, estate<\/span>, or gift tax deduction has been allowed, in whole or in part, for the contributions to such trust<\/span> if the exercise of such power would limit or reduce the amount of such deduction. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nDISBURSEMENT FROM PRINCIPAL (\u00a7 64.2-1065)\n\nA. Subject to \u00a7 64.2-1068, and except as otherwise provided in subdivision C 2\nof \u00a7 64.2-1071, a fiduciary shall disburse from principal:\n\n 1. The balance of the disbursements described in subdivisions 1 and 3 of\n § 64.2-1064, after application of subdivision 2 of § 64.2-1064;\n\n 2. The fiduciary’s compensation calculated on principal as a fee for\n acceptance, distribution, or termination;\n\n 3. A payment of an expense to prepare for or execute a sale or other\n disposition of property;\n\n 4. A payment on the principal of a trust debt;\n\n 5. A payment of an expense of an accounting, judicial or nonjudicial\n proceeding, or other matter that involves primarily principal, including a\n proceeding to construe the terms of the trust or protect property;\n\n 6. A payment of a premium for insurance, including title insurance, not\n described in subdivision 4 of § 64.2-1064, of which the fiduciary is the\n owner and beneficiary;\n\n 7. A payment of an estate or inheritance tax or other tax imposed because of\n the death of a decedent, including penalties, apportioned to the trust; and\n\n 8. A payment:\n \t\t\t\ta. Related to environmental matters, including:\n\n 1. Reclamation;\n\n 2. Assessing environmental conditions;\n\n 3. Remedying and removing environmental contamination;\n\n 4. Monitoring remedial activities and the release of substances;\n\n 5. Preventing future releases of substances;\n\n 6. Collecting amounts from persons liable or potentially liable for the\n costs of activities described in subdivisions (1) through (5);\n\n 7. Penalties imposed under environmental laws or regulations;\n\n 8. Other actions to comply with environmental laws or regulations;\n\n 9. Statutory or common law claims by third parties; and\n\n 10. Defending claims based on environmental matters; and\n \t\t\t\t\tb. For a premium for insurance for matters described in subdivision a.\n\nB. If a principal asset is encumbered with an obligation that requires income\nfrom the asset to be paid directly to a creditor, the fiduciary shall transfer\nfrom principal to income an amount equal to the income paid to the creditor in\nreduction of the principal balance of the obligation.\n\nC. Notwithstanding any other provision of law and unless the terms of the trust\nprovide to the contrary, a trustee may pay from the principal of the trust from\ntime to time (i) the federal or state income taxes, or both, imposed upon the\nsettlor on income of the trust that is not distributed to the settlor or (ii)\nsuch amounts that are required to reimburse the settlor for any federal or state\nincome taxes, or both, imposed on the settlor on income of the trust that is not\ndistributed to the settlor. The trustee shall not have the power to make\npayments pursuant to this subsection with respect to any trust where a\ncharitable income, estate, or gift tax deduction has been allowed, in whole or\nin part, for the contributions to such trust if the exercise of such power would\nlimit or reduce the amount of such deduction.\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}}