{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/64.2-1068.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/64.2-1068.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/64.2-1068.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/64.2-1068.html"}],"law_id":83008,"edition_id":1,"section_id":83008,"structure_id":16288,"section_number":"64.2-1068","catch_line":"Reimbursement of principal from income","history":"2022, c. 354.","full_text":"A\n\nIf a fiduciary makes or expects to make a principal disbursement described in subsection B, the fiduciary may transfer an appropriate amount from income to principal in one or more accounting periods to reimburse principal or provide a reserve for future principal disbursements.B\n\nTo the extent a fiduciary has not been and does not expect to be reimbursed by a third party, principal disbursements to which subsection A applies include:1\n\nAn amount chargeable to income but paid from principal because income is not sufficient;2\n\nThe cost of an improvement to principal, whether a change to an existing asset or the construction of a new asset, including a special assessment;3\n\nA disbursement made to prepare property for rental, including tenant allowances, leasehold improvements, and commissions;4\n\nA periodic payment on an obligation secured by a principal asset, to the extent the amount transferred from income to principal for depreciation is less than the periodic payment; and5\n\nA disbursement described in subsection A of § 64.2-1065.C\n\nIf an asset whose ownership gives rise to a principal disbursement becomes subject to a successive interest after an income interest ends, the fiduciary may continue to make transfers under subsection A.","order_by":null,"text":{"0":{"id":297554,"text":"If a fiduciary makes or expects to make a principal disbursement described in subsection B, the fiduciary may transfer an appropriate amount from income to principal in one or more accounting periods to reimburse principal or provide a reserve for future principal disbursements.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":297555,"text":"To the extent a fiduciary has not been and does not expect to be reimbursed by a third party, principal disbursements to which subsection A applies include:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":297556,"text":"An amount chargeable to income but paid from principal because income is not sufficient;","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":297557,"text":"The cost of an improvement to principal, whether a change to an existing asset or the construction of a new asset, including a special assessment;","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"4":{"id":297558,"text":"A disbursement made to prepare property for rental, including tenant allowances, leasehold improvements, and commissions;","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"B4"},"5":{"id":297559,"text":"A periodic payment on an obligation secured by a principal asset, to the extent the amount transferred from income to principal for depreciation is less than the periodic payment; and","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B3","next_prefix":"B5"},"6":{"id":297560,"text":"A disbursement described in subsection A of § 64.2-1065.","type":"section","prefixes":["B","5"],"prefix":"5","entire_prefix":"B5","prefix_anchor":"B5","level":2,"prior_prefix":"B4","next_prefix":"C"},"7":{"id":297561,"text":"If an asset whose ownership gives rise to a principal disbursement becomes subject to a successive interest after an income interest ends, the fiduciary may continue to make transfers under subsection A.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B5"}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/64.2-1068\/","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":68322,"section_number":"64.2-1065","catch_line":"Disbursement from principal","order_by":null,"url":"\/64.2-1065\/"},{"id":77952,"section_number":"64.2-1069","catch_line":"Income taxes","order_by":null,"url":"\/64.2-1069\/"}],"refers_to":false,"permalink":{"id":274033,"object_type":"law","relational_id":83008,"identifier":"64.2-1068","token":"64.2\/III\/10.1\/7\/64.2-1068","url":"\/64.2-1068\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/64.2-1068\/","token":"64.2\/III\/10.1\/7\/64.2-1068","dublin_core":{"Title":"Reimbursement of principal from income","Type":"Text","Format":"text\/html","Identifier":"\u00a7 64.2-1068","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> If a fiduciary<\/span> makes or expects to make a principal<\/span> disbursement described in subsection B, the fiduciary<\/span> may transfer an appropriate amount from income<\/span> to principal<\/span> in one or more accounting periods<\/span> to reimburse principal<\/span> or provide a reserve for future principal<\/span> disbursements. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> To the extent a fiduciary<\/span> has not been and does not expect to be reimbursed by a third party<\/span>, principal<\/span> disbursements to which subsection A applies include: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> An amount chargeable to income<\/span> but paid from principal<\/span> because income<\/span> is not sufficient; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The cost of an improvement to principal<\/span>, whether a change to an existing asset or the construction of a new asset, including a special assessment; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> A disbursement made to prepare property for rental, including tenant allowances, leasehold improvements, and commissions; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> A periodic payment on an obligation secured by a principal<\/span> asset, to the extent the amount transferred from income<\/span> to principal<\/span> for depreciation is less than the periodic payment; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> A disbursement described in subsection A of § 64.2-1065<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> If an asset whose ownership gives rise to a principal<\/span> disbursement becomes subject to a successive interest<\/span> after an income interest<\/span> ends, the fiduciary<\/span> may continue to make transfers under subsection A. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nREIMBURSEMENT OF PRINCIPAL FROM INCOME (\u00a7 64.2-1068)\n\nA. If a fiduciary makes or expects to make a principal disbursement described in\nsubsection B, the fiduciary may transfer an appropriate amount from income to\nprincipal in one or more accounting periods to reimburse principal or provide a\nreserve for future principal disbursements.\n\nB. To the extent a fiduciary has not been and does not expect to be reimbursed\nby a third party, principal disbursements to which subsection A applies include:\n\n 1. An amount chargeable to income but paid from principal because income is\n not sufficient;\n\n 2. The cost of an improvement to principal, whether a change to an existing\n asset or the construction of a new asset, including a special assessment;\n\n 3. A disbursement made to prepare property for rental, including tenant\n allowances, leasehold improvements, and commissions;\n\n 4. A periodic payment on an obligation secured by a principal asset, to the\n extent the amount transferred from income to principal for depreciation is\n less than the periodic payment; and\n\n 5. A disbursement described in subsection A of § 64.2-1065.\n\nC. If an asset whose ownership gives rise to a principal disbursement becomes\nsubject to a successive interest after an income interest ends, the fiduciary\nmay continue to make transfers under subsection A.\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}}