{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/64.2-776.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/64.2-776.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/64.2-776.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/64.2-776.html"}],"law_id":63636,"edition_id":1,"section_id":63636,"structure_id":12989,"section_number":"64.2-776","catch_line":"Discretionary powers; tax savings","history":"2005, c. 935, \u00a7 55-548.14; 2012, c. 614; 2013, c. 324.","full_text":"A\n\nNotwithstanding the breadth of discretion granted to a trustee in the terms of the trust, including the use of such terms as “absolute,” “sole,” or “uncontrolled,” the trustee shall exercise a discretionary power in good faith and in accordance with the terms and purposes of the trust and the interests of the beneficiaries.B\n\nSubject to subsection D, and unless the terms of the trust expressly indicate that a rule in this subsection does not apply:1\n\nA person other than a settlor who is a beneficiary and trustee of a trust that confers on the trustee a power to make discretionary distributions to or for the trustee’s personal benefit may exercise the power only in accordance with an ascertainable standard; and2\n\nA trustee may not exercise a power to make discretionary distributions to satisfy a legal obligation of support that the trustee personally owes another person.\n\t\t\t\tFor purposes of this subsection, “trustee” includes a person who is deemed to have any power of a trustee, whether because such person has the right to remove or replace any trustee or because a reciprocal trust or power doctrine applies.C\n\nA power whose exercise is limited or prohibited by subsection B may be exercised by a majority of the remaining trustees whose exercise of the power is not so limited or prohibited. If the power of all trustees is so limited or prohibited, the court may appoint a special fiduciary with authority to exercise the power.D\n\nSubsection B does not apply to:1\n\nA power held by the settlor’s spouse who is the trustee of a trust for which a marital deduction, as defined in § 2056(b)(5) or 2523(e) of the Internal Revenue Code of 1986, as in effect on the effective date of this chapter, or as later amended, was previously allowed;2\n\nAny trust during any period that the trust may be revoked or amended by its settlor; or3\n\nA trust if contributions to the trust qualify for the annual exclusion under § 2503(c) of the Internal Revenue Code of 1986, as in effect on the effective date of this chapter, or as later amended.","order_by":null,"text":{"0":{"id":231823,"text":"Notwithstanding the breadth of discretion granted to a trustee in the terms of the trust, including the use of such terms as “absolute,” “sole,” or “uncontrolled,” the trustee shall exercise a discretionary power in good faith and in accordance with the terms and purposes of the trust and the interests of the beneficiaries.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":231824,"text":"Subject to subsection D, and unless the terms of the trust expressly indicate that a rule in this subsection does not apply:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":231825,"text":"A person other than a settlor who is a beneficiary and trustee of a trust that confers on the trustee a power to make discretionary distributions to or for the trustee’s personal benefit may exercise the power only in accordance with an ascertainable standard; and","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":231826,"text":"A trustee may not exercise a power to make discretionary distributions to satisfy a legal obligation of support that the trustee personally owes another person.\n\t\t\t\tFor purposes of this subsection, “trustee” includes a person who is deemed to have any power of a trustee, whether because such person has the right to remove or replace any trustee or because a reciprocal trust or power doctrine applies.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"C"},"4":{"id":231827,"text":"A power whose exercise is limited or prohibited by subsection B may be exercised by a majority of the remaining trustees whose exercise of the power is not so limited or prohibited. If the power of all trustees is so limited or prohibited, the court may appoint a special fiduciary with authority to exercise the power.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B2","next_prefix":"D"},"5":{"id":231828,"text":"Subsection B does not apply to:","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"D1"},"6":{"id":231829,"text":"A power held by the settlor’s spouse who is the trustee of a trust for which a marital deduction, as defined in § 2056(b)(5) or 2523(e) of the Internal Revenue Code of 1986, as in effect on the effective date of this chapter, or as later amended, was previously allowed;","type":"section","prefixes":["D","1"],"prefix":"1","entire_prefix":"D1","prefix_anchor":"D1","level":2,"prior_prefix":"D","next_prefix":"D2"},"7":{"id":231830,"text":"Any trust during any period that the trust may be revoked or amended by its settlor; or","type":"section","prefixes":["D","2"],"prefix":"2","entire_prefix":"D2","prefix_anchor":"D2","level":2,"prior_prefix":"D1","next_prefix":"D3"},"8":{"id":231831,"text":"A trust if contributions to the trust qualify for the annual exclusion under § 2503(c) of the Internal Revenue Code of 1986, as in effect on the effective date of this chapter, or as later amended.","type":"section","prefixes":["D","3"],"prefix":"3","entire_prefix":"D3","prefix_anchor":"D3","level":2,"prior_prefix":"D2"}},"ancestry":[{"id":12989,"edition_id":1,"name":"Duties and Powers of Trustee","identifier":"8","label":"article","depth":4,"order_by":1,"parent_id":12725,"metadata":{},"date_created":"2026-06-26 03:44:06","date_modified":"2026-06-26 03:44:06","permalink":{"id":274455,"object_type":"structure","relational_id":12989,"identifier":"8","token":"64.2\/III\/7\/8","url":"\/64.2\/III\/7\/8\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12725,"edition_id":1,"name":"Uniform Trust Code","identifier":"7","label":"chapter","depth":3,"order_by":1,"parent_id":12724,"metadata":{},"date_created":"2026-06-26 03:43:50","date_modified":"2026-06-26 03:43:50","permalink":{"id":274107,"object_type":"structure","relational_id":12725,"identifier":"7","token":"64.2\/III\/7","url":"\/64.2\/III\/7\/","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":65102,"structure_id":12989,"section_number":"64.2-763","catch_line":"Duty to administer trust and invest","url":"\/64.2-763\/","token":"64.2\/III\/7\/8\/64.2-763","metadata":false},{"id":58429,"structure_id":12989,"section_number":"64.2-764","catch_line":"Duty of loyalty","url":"\/64.2-764\/","token":"64.2\/III\/7\/8\/64.2-764","metadata":false},{"id":64366,"structure_id":12989,"section_number":"64.2-765","catch_line":"Impartiality","url":"\/64.2-765\/","token":"64.2\/III\/7\/8\/64.2-765","metadata":false},{"id":71701,"structure_id":12989,"section_number":"64.2-766","catch_line":"Prudent administration","url":"\/64.2-766\/","token":"64.2\/III\/7\/8\/64.2-766","metadata":false},{"id":78963,"structure_id":12989,"section_number":"64.2-767","catch_line":"Costs of administration","url":"\/64.2-767\/","token":"64.2\/III\/7\/8\/64.2-767","metadata":false},{"id":54069,"structure_id":12989,"section_number":"64.2-768","catch_line":"Trustee's skills","url":"\/64.2-768\/","token":"64.2\/III\/7\/8\/64.2-768","metadata":false},{"id":87228,"structure_id":12989,"section_number":"64.2-769","catch_line":"Delegation by trustee","url":"\/64.2-769\/","token":"64.2\/III\/7\/8\/64.2-769","metadata":false},{"id":80013,"structure_id":12989,"section_number":"64.2-770","catch_line":"Repealed","url":"\/64.2-770\/","token":"64.2\/III\/7\/8\/64.2-770","metadata":false},{"id":86531,"structure_id":12989,"section_number":"64.2-771","catch_line":"Control and protection of trust property","url":"\/64.2-771\/","token":"64.2\/III\/7\/8\/64.2-771","metadata":false},{"id":84356,"structure_id":12989,"section_number":"64.2-772","catch_line":"Recordkeeping and identification of trust property","url":"\/64.2-772\/","token":"64.2\/III\/7\/8\/64.2-772","metadata":false},{"id":86060,"structure_id":12989,"section_number":"64.2-773","catch_line":"Enforcement and defense of claims","url":"\/64.2-773\/","token":"64.2\/III\/7\/8\/64.2-773","metadata":false},{"id":56796,"structure_id":12989,"section_number":"64.2-774","catch_line":"Collecting trust property","url":"\/64.2-774\/","token":"64.2\/III\/7\/8\/64.2-774","metadata":false},{"id":83323,"structure_id":12989,"section_number":"64.2-775","catch_line":"Duty to inform and report","url":"\/64.2-775\/","token":"64.2\/III\/7\/8\/64.2-775","metadata":false},{"id":63636,"structure_id":12989,"section_number":"64.2-776","catch_line":"Discretionary powers; tax savings","url":"\/64.2-776\/","token":"64.2\/III\/7\/8\/64.2-776","metadata":false},{"id":71035,"structure_id":12989,"section_number":"64.2-777","catch_line":"General powers of trustee","url":"\/64.2-777\/","token":"64.2\/III\/7\/8\/64.2-777","metadata":false},{"id":71830,"structure_id":12989,"section_number":"64.2-778","catch_line":"Specific powers of trustee","url":"\/64.2-778\/","token":"64.2\/III\/7\/8\/64.2-778","metadata":false},{"id":64838,"structure_id":12989,"section_number":"64.2-778.1","catch_line":"Repealed","url":"\/64.2-778.1\/","token":"64.2\/III\/7\/8\/64.2-778.1","metadata":false},{"id":67100,"structure_id":12989,"section_number":"64.2-779","catch_line":"Distribution upon termination","url":"\/64.2-779\/","token":"64.2\/III\/7\/8\/64.2-779","metadata":false}],"previous_section":{"id":83323,"structure_id":12989,"section_number":"64.2-775","catch_line":"Duty to inform and report","url":"\/64.2-775\/","token":"64.2\/III\/7\/8\/64.2-775","metadata":false},"next_section":{"id":71035,"structure_id":12989,"section_number":"64.2-777","catch_line":"General powers of trustee","url":"\/64.2-777\/","token":"64.2\/III\/7\/8\/64.2-777","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/64.2-776\/","history_text":"

This law was first created in 2005. The record of its establishment is cataloged in chapter 935<\/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. It has been modified 2 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 2012, chapter 614<\/a>; in 2013, chapter 324<\/a>.<\/p>","references":false,"refers_to":false,"permalink":{"id":274509,"object_type":"law","relational_id":63636,"identifier":"64.2-776","token":"64.2\/III\/7\/8\/64.2-776","url":"\/64.2-776\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/64.2-776\/","token":"64.2\/III\/7\/8\/64.2-776","dublin_core":{"Title":"Discretionary powers; tax savings","Type":"Text","Format":"text\/html","Identifier":"\u00a7 64.2-776","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Notwithstanding the breadth of discretion granted to a trustee<\/span> in the terms of the trust, including the use of such terms as “absolute,” “sole,” or “uncontrolled,” the trustee<\/span> shall exercise a discretionary power in good faith and in accordance with the terms and purposes of the trust and the interests of the beneficiaries<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Subject to subsection D, and unless the terms of the trust expressly indicate that a rule in this subsection does not apply: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> A person<\/span> other than a settlor who is a beneficiary<\/span> and trustee<\/span> of a trust that confers on the trustee<\/span> a power to make discretionary distributions to or for the trustee<\/span>’s personal benefit may exercise the power only in accordance with an ascertainable standard<\/span>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> A trustee<\/span> may not exercise a power to make discretionary distributions to satisfy a legal obligation of support that the trustee<\/span> personally owes another person<\/span>.\n\t\t\t\tFor purposes of this subsection, “trustee<\/span>” includes a person<\/span> who is deemed to have any power of a trustee<\/span>, whether because such person<\/span> has the right to remove or replace any trustee<\/span> or because a reciprocal trust or power doctrine applies. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> A power whose exercise is limited or prohibited by subsection B may be exercised by a majority of the remaining trustees<\/span> whose exercise of the power is not so limited or prohibited. If the power of all trustees<\/span> is so limited or prohibited, the court<\/span> may appoint a special fiduciary<\/span> with authority to exercise the power. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> Subsection B does not apply to: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> A power held by the settlor’s spouse who is the trustee<\/span> of a trust for which a marital deduction, as defined in § 2056(b)(5) or 2523(e) of the Internal Revenue Code of 1986, as in effect on the effective date of this chapter, or as later amended, was previously allowed; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Any trust during any period that the trust may be revoked or amended by its settlor; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> A trust if contributions to the trust qualify for the annual exclusion under § 2503(c) of the Internal Revenue Code of 1986, as in effect on the effective date of this chapter, or as later amended. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nDISCRETIONARY POWERS; TAX SAVINGS (\u00a7 64.2-776)\n\nA. Notwithstanding the breadth of discretion granted to a trustee in the terms\nof the trust, including the use of such terms as “absolute,”\n“sole,” or “uncontrolled,” the trustee shall exercise a\ndiscretionary power in good faith and in accordance with the terms and purposes\nof the trust and the interests of the beneficiaries.\n\nB. Subject to subsection D, and unless the terms of the trust expressly indicate\nthat a rule in this subsection does not apply:\n\n 1. A person other than a settlor who is a beneficiary and trustee of a trust\n that confers on the trustee a power to make discretionary distributions to or\n for the trustee’s personal benefit may exercise the power only in\n accordance with an ascertainable standard; and\n\n 2. A trustee may not exercise a power to make discretionary distributions to\n satisfy a legal obligation of support that the trustee personally owes another\n person.\n \t\t\t\tFor purposes of this subsection, “trustee” includes a person\n who is deemed to have any power of a trustee, whether because such person has\n the right to remove or replace any trustee or because a reciprocal trust or\n power doctrine applies.\n\nC. A power whose exercise is limited or prohibited by subsection B may be\nexercised by a majority of the remaining trustees whose exercise of the power is\nnot so limited or prohibited. If the power of all trustees is so limited or\nprohibited, the court may appoint a special fiduciary with authority to exercise\nthe power.\n\nD. Subsection B does not apply to:\n\n 1. A power held by the settlor’s spouse who is the trustee of a trust\n for which a marital deduction, as defined in § 2056(b)(5) or 2523(e) of\n the Internal Revenue Code of 1986, as in effect on the effective date of this\n chapter, or as later amended, was previously allowed;\n\n 2. Any trust during any period that the trust may be revoked or amended by its\n settlor; or\n\n 3. A trust if contributions to the trust qualify for the annual exclusion\n under § 2503(c) of the Internal Revenue Code of 1986, as in effect on the\n effective date of this chapter, or as later amended.\n\nHISTORY: 2005, c. 935, \u00a7 55-548.14; 2012, c. 614; 2013, c. 324.","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}}