{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/64.2-1070.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/64.2-1070.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/64.2-1070.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/64.2-1070.html"}],"law_id":85750,"edition_id":1,"section_id":85750,"structure_id":16288,"section_number":"64.2-1070","catch_line":"Adjustment between income and principal because of taxes","history":"2022, c. 354.","full_text":"A\n\nA fiduciary may make an adjustment between income and principal to offset the shifting of economic interests or tax benefits between current income beneficiaries and successor beneficiaries that arises from:1\n\nAn election or decision the fiduciary makes regarding a tax matter, other than a decision to claim an income tax deduction to which subsection B applies;2\n\nAn income tax or other tax imposed on the fiduciary or a beneficiary as a result of a transaction involving the fiduciary or a distribution by the fiduciary; or3\n\nOwnership by the fiduciary of an interest in an entity a part of whose taxable income, whether or not distributed, is includable in the taxable income of the fiduciary or a beneficiary.B\n\nIf the amount of an estate tax marital or charitable deduction is reduced because a fiduciary deducts an amount paid from principal for income tax purposes instead of deducting it for estate tax purposes and, as a result, estate taxes paid from principal are increased and income taxes paid by the fiduciary or a beneficiary are decreased, the fiduciary shall charge each beneficiary that benefits from the decrease in income tax to reimburse the principal from which the increase in estate tax is paid. The total reimbursement must equal the increase in the estate tax, to the extent the principal used to pay the increase would have qualified for a marital or charitable deduction but for the payment. The share of the reimbursement for each fiduciary or beneficiary whose income taxes are reduced must be the same as its share of the total decrease in income tax.C\n\nA fiduciary that charges a beneficiary under subsection B may offset the charge by obtaining payment from the beneficiary, withholding an amount from future distributions to the beneficiary, or adopting another method or combination of methods.","order_by":null,"text":{"0":{"id":307097,"text":"A fiduciary may make an adjustment between income and principal to offset the shifting of economic interests or tax benefits between current income beneficiaries and successor beneficiaries that arises from:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":307098,"text":"An election or decision the fiduciary makes regarding a tax matter, other than a decision to claim an income tax deduction to which subsection B applies;","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":307099,"text":"An income tax or other tax imposed on the fiduciary or a beneficiary as a result of a transaction involving the fiduciary or a distribution by the fiduciary; or","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":307100,"text":"Ownership by the fiduciary of an interest in an entity a part of whose taxable income, whether or not distributed, is includable in the taxable income of the fiduciary or a beneficiary.","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"B"},"4":{"id":307101,"text":"If the amount of an estate tax marital or charitable deduction is reduced because a fiduciary deducts an amount paid from principal for income tax purposes instead of deducting it for estate tax purposes and, as a result, estate taxes paid from principal are increased and income taxes paid by the fiduciary or a beneficiary are decreased, the fiduciary shall charge each beneficiary that benefits from the decrease in income tax to reimburse the principal from which the increase in estate tax is paid. The total reimbursement must equal the increase in the estate tax, to the extent the principal used to pay the increase would have qualified for a marital or charitable deduction but for the payment. The share of the reimbursement for each fiduciary or beneficiary whose income taxes are reduced must be the same as its share of the total decrease in income tax.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A3","next_prefix":"C"},"5":{"id":307102,"text":"A fiduciary that charges a beneficiary under subsection B may offset the charge by obtaining payment from the beneficiary, withholding an amount from future distributions to the beneficiary, or adopting another method or combination of methods.","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":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\/64.2-1070\/","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":77952,"section_number":"64.2-1069","catch_line":"Income taxes","order_by":null,"url":"\/64.2-1069\/"},{"id":68355,"section_number":"64.2-1071","catch_line":"Determination and distribution of net income","order_by":null,"url":"\/64.2-1071\/"}],"refers_to":false,"permalink":{"id":274041,"object_type":"law","relational_id":85750,"identifier":"64.2-1070","token":"64.2\/III\/10.1\/7\/64.2-1070","url":"\/64.2-1070\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/64.2-1070\/","token":"64.2\/III\/10.1\/7\/64.2-1070","dublin_core":{"Title":"Adjustment between income and principal because of taxes","Type":"Text","Format":"text\/html","Identifier":"\u00a7 64.2-1070","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> A fiduciary<\/span> may make an adjustment between income<\/span> and principal<\/span> to offset the shifting of economic interests or tax benefits between current income<\/span> beneficiaries and successor beneficiaries that arises from: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> An election or decision the fiduciary<\/span> makes regarding a tax matter, other than a decision to claim an income<\/span> tax deduction to which subsection B applies; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> An income<\/span> tax or other tax imposed on the fiduciary<\/span> or a beneficiary as a result of a transaction involving the fiduciary<\/span> or a distribution<\/span> by the fiduciary<\/span>; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Ownership by the fiduciary<\/span> of an interest in an entity a part of whose taxable income<\/span>, whether or not distributed, is includable in the taxable income<\/span> of the fiduciary<\/span> or a beneficiary. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> If the amount of an estate<\/span> tax marital or charitable deduction is reduced because a fiduciary<\/span> deducts an amount paid from principal<\/span> for income<\/span> tax purposes instead of deducting it for estate<\/span> tax purposes and, as a result, estate<\/span> taxes paid from principal<\/span> are increased and income<\/span> taxes paid by the fiduciary<\/span> or a beneficiary are decreased, the fiduciary<\/span> shall charge each beneficiary that benefits from the decrease in income<\/span> tax to reimburse the principal<\/span> from which the increase in estate<\/span> tax is paid. The total reimbursement must equal the increase in the estate<\/span> tax, to the extent the principal<\/span> used to pay the increase would have qualified for a marital or charitable deduction but for the payment. The share of the reimbursement for each fiduciary<\/span> or beneficiary whose income<\/span> taxes are reduced must be the same as its share of the total decrease in income<\/span> tax. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> A fiduciary<\/span> that charges a beneficiary under subsection B may offset the charge by obtaining payment from the beneficiary, withholding an amount from future distributions<\/span> to the beneficiary, or adopting another method or combination of methods. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nADJUSTMENT BETWEEN INCOME AND PRINCIPAL BECAUSE OF TAXES (\u00a7 64.2-1070)\n\nA. A fiduciary may make an adjustment between income and principal to offset the\nshifting of economic interests or tax benefits between current income\nbeneficiaries and successor beneficiaries that arises from:\n\n 1. An election or decision the fiduciary makes regarding a tax matter, other\n than a decision to claim an income tax deduction to which subsection B\n applies;\n\n 2. An income tax or other tax imposed on the fiduciary or a beneficiary as a\n result of a transaction involving the fiduciary or a distribution by the\n fiduciary; or\n\n 3. Ownership by the fiduciary of an interest in an entity a part of whose\n taxable income, whether or not distributed, is includable in the taxable\n income of the fiduciary or a beneficiary.\n\nB. If the amount of an estate tax marital or charitable deduction is reduced\nbecause a fiduciary deducts an amount paid from principal for income tax\npurposes instead of deducting it for estate tax purposes and, as a result,\nestate taxes paid from principal are increased and income taxes paid by the\nfiduciary or a beneficiary are decreased, the fiduciary shall charge each\nbeneficiary that benefits from the decrease in income tax to reimburse the\nprincipal from which the increase in estate tax is paid. The total reimbursement\nmust equal the increase in the estate tax, to the extent the principal used to\npay the increase would have qualified for a marital or charitable deduction but\nfor the payment. The share of the reimbursement for each fiduciary or\nbeneficiary whose income taxes are reduced must be the same as its share of the\ntotal decrease in income tax.\n\nC. A fiduciary that charges a beneficiary under subsection B may offset the\ncharge by obtaining payment from the beneficiary, withholding an amount from\nfuture distributions to the beneficiary, or adopting another method or\ncombination of methods.\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}}