{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/64.2-779.10.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/64.2-779.10.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/64.2-779.10.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/64.2-779.10.html"}],"law_id":60630,"edition_id":1,"section_id":60630,"structure_id":13034,"section_number":"64.2-779.10","catch_line":"Trust for beneficiary with disability","history":"2017, c. 592.","full_text":"A\n\nAs used in this section:\n\t\t\t“Beneficiary with a disability” means a beneficiary of a first trust who the special-needs fiduciary believes may qualify for governmental benefits based on disability, whether or not the beneficiary currently receives those benefits or is an individual who has been determined to be an incapacitated person.\n\t\t\t“Governmental benefits” means financial aid or services from a state, federal, or other public agency.\n\t\t\t“Special-needs fiduciary” means, with respect to a trust that has a beneficiary with a disability:1\n\nA trustee or other fiduciary, other than a settlor, that has discretion to distribute part or all of the principal of a first trust to one or more current beneficiaries;2\n\nIf no trustee or fiduciary has discretion under subdivision 1, a trustee or other fiduciary, other than a settlor, that has discretion to distribute part or all of the income of the first trust to one or more current beneficiaries; or3\n\nIf no trustee or fiduciary has discretion under subdivisions 1 and 2, a trustee or other fiduciary, other than a settlor, that is required to distribute part or all of the income or principal of the first trust to one or more current beneficiaries.\n\t\t\t\t“Special-needs trust” means a trust the trustee believes would not be considered a resource for purposes of determining whether a beneficiary with a disability is eligible for governmental benefits.B\n\nA special-needs fiduciary may exercise the decanting power under \u00a7 64.2-779.8 over the income or principal of a first trust, including a first trust under which the fiduciary has only limited distributive discretion as defined in subsection A of \u00a7 64.2-779.9, as if the fiduciary had authority to distribute income or principal to a beneficiary with a disability subject to expanded distributive discretion if:1\n\nA second trust is a special-needs trust that benefits the beneficiary with a disability; and2\n\nThe special-needs fiduciary determines that exercise of the decanting power will further the purposes of the first trust.C\n\nIn an exercise of the decanting power under this section, the following rules apply:1\n\nNotwithstanding subdivision C 2 of § 64.2-779.8, the interest in the second trust of a beneficiary with a disability may:\n\t\t\t\ta. Be a pooled trust as defined by Medicaid law for the benefit of the beneficiary with a disability under 42 U.S.C. § 1396p(d)(4)(C); or\n\t\t\t\tb. Contain payback provisions complying with reimbursement requirements of Medicaid law under 42 U.S.C. § 1396p(d)(4)(A).2\n\nSubdivision C 3 of § 64.2-779.8 does not apply to the interests of the beneficiary with a disability.3\n\nExcept as affected by any change to the interests of the beneficiary with a disability, the second trust, or if there are two or more second trusts, the second trusts in the aggregate, must grant each other beneficiary of the first trust beneficial interests in the second trusts that are substantially similar to the beneficiary’s beneficial interests in the first trust.","order_by":null,"text":{"0":{"id":221601,"text":"As used in this section:\n\t\t\t“Beneficiary with a disability” means a beneficiary of a first trust who the special-needs fiduciary believes may qualify for governmental benefits based on disability, whether or not the beneficiary currently receives those benefits or is an individual who has been determined to be an incapacitated person.\n\t\t\t“Governmental benefits” means financial aid or services from a state, federal, or other public agency.\n\t\t\t“Special-needs fiduciary” means, with respect to a trust that has a beneficiary with a disability:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":221602,"text":"A trustee or other fiduciary, other than a settlor, that has discretion to distribute part or all of the principal of a first trust to one or more current beneficiaries;","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":221603,"text":"If no trustee or fiduciary has discretion under subdivision 1, a trustee or other fiduciary, other than a settlor, that has discretion to distribute part or all of the income of the first trust to one or more current beneficiaries; or","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":221604,"text":"If no trustee or fiduciary has discretion under subdivisions 1 and 2, a trustee or other fiduciary, other than a settlor, that is required to distribute part or all of the income or principal of the first trust to one or more current beneficiaries.\n\t\t\t\t“Special-needs trust” means a trust the trustee believes would not be considered a resource for purposes of determining whether a beneficiary with a disability is eligible for governmental benefits.","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"B"},"4":{"id":221605,"text":"A special-needs fiduciary may exercise the decanting power under \u00a7 64.2-779.8 over the income or principal of a first trust, including a first trust under which the fiduciary has only limited distributive discretion as defined in subsection A of \u00a7 64.2-779.9, as if the fiduciary had authority to distribute income or principal to a beneficiary with a disability subject to expanded distributive discretion if:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A3","next_prefix":"B1"},"5":{"id":221606,"text":"A second trust is a special-needs trust that benefits the beneficiary with a disability; and","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"6":{"id":221607,"text":"The special-needs fiduciary determines that exercise of the decanting power will further the purposes of the first trust.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"C"},"7":{"id":221608,"text":"In an exercise of the decanting power under this section, the following rules apply:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B2","next_prefix":"C1"},"8":{"id":221609,"text":"Notwithstanding subdivision C 2 of § 64.2-779.8, the interest in the second trust of a beneficiary with a disability may:\n\t\t\t\ta. Be a pooled trust as defined by Medicaid law for the benefit of the beneficiary with a disability under 42 U.S.C. § 1396p(d)(4)(C); or\n\t\t\t\tb. Contain payback provisions complying with reimbursement requirements of Medicaid law under 42 U.S.C. § 1396p(d)(4)(A).","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"9":{"id":221610,"text":"Subdivision C 3 of § 64.2-779.8 does not apply to the interests of the beneficiary with a disability.","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"C3"},"10":{"id":221611,"text":"Except as affected by any change to the interests of the beneficiary with a disability, the second trust, or if there are two or more second trusts, the second trusts in the aggregate, must grant each other beneficiary of the first trust beneficial interests in the second trusts that are substantially similar to the beneficiary’s beneficial interests in the first trust.","type":"section","prefixes":["C","3"],"prefix":"3","entire_prefix":"C3","prefix_anchor":"C3","level":2,"prior_prefix":"C2"}},"ancestry":[{"id":13034,"edition_id":1,"name":"Uniform Trust Decanting Act","identifier":"8.1","label":"article","depth":4,"order_by":1,"parent_id":12725,"metadata":{},"date_created":"2026-06-26 03:44:10","date_modified":"2026-06-26 03:44:10","permalink":{"id":274529,"object_type":"structure","relational_id":13034,"identifier":"8.1","token":"64.2\/III\/7\/8.1","url":"\/64.2\/III\/7\/8.1\/","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 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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":69107,"structure_id":13034,"section_number":"64.2-779.1","catch_line":"Scope","url":"\/64.2-779.1\/","token":"64.2\/III\/7\/8.1\/64.2-779.1","metadata":false},{"id":60630,"structure_id":13034,"section_number":"64.2-779.10","catch_line":"Trust for beneficiary with disability","url":"\/64.2-779.10\/","token":"64.2\/III\/7\/8.1\/64.2-779.10","metadata":false},{"id":76498,"structure_id":13034,"section_number":"64.2-779.11","catch_line":"Protection of charitable interest","url":"\/64.2-779.11\/","token":"64.2\/III\/7\/8.1\/64.2-779.11","metadata":false},{"id":56684,"structure_id":13034,"section_number":"64.2-779.12","catch_line":"Trust limitation on 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discretion","url":"\/64.2-779.8\/","token":"64.2\/III\/7\/8.1\/64.2-779.8","metadata":false},{"id":77579,"structure_id":13034,"section_number":"64.2-779.9","catch_line":"Decanting power under limited distributive discretion","url":"\/64.2-779.9\/","token":"64.2\/III\/7\/8.1\/64.2-779.9","metadata":false}],"previous_section":{"id":69107,"structure_id":13034,"section_number":"64.2-779.1","catch_line":"Scope","url":"\/64.2-779.1\/","token":"64.2\/III\/7\/8.1\/64.2-779.1","metadata":false},"next_section":{"id":76498,"structure_id":13034,"section_number":"64.2-779.11","catch_line":"Protection of charitable interest","url":"\/64.2-779.11\/","token":"64.2\/III\/7\/8.1\/64.2-779.11","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/64.2-779.10\/","history_text":"

This law was first created in 2017. The record of its establishment is cataloged in chapter 592<\/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":80693,"section_number":"64.2-701","catch_line":"Definitions","order_by":null,"url":"\/64.2-701\/"},{"id":79506,"section_number":"64.2-779.8","catch_line":"Decanting power under expanded distributive discretion","order_by":null,"url":"\/64.2-779.8\/"},{"id":75536,"section_number":"8.01-76","catch_line":"How proceeds from disposition to be secured and applied; when same may be paid over","order_by":null,"url":"\/8.01-76\/"}],"refers_to":[{"id":79506,"section_number":"64.2-779.8","catch_line":"Decanting power under expanded distributive discretion","order_by":null,"url":"\/64.2-779.8\/"},{"id":77579,"section_number":"64.2-779.9","catch_line":"Decanting power under limited distributive discretion","order_by":null,"url":"\/64.2-779.9\/"}],"permalink":{"id":274535,"object_type":"law","relational_id":60630,"identifier":"64.2-779.10","token":"64.2\/III\/7\/8.1\/64.2-779.10","url":"\/64.2-779.10\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/64.2-779.10\/","token":"64.2\/III\/7\/8.1\/64.2-779.10","dublin_core":{"Title":"Trust for beneficiary with disability","Type":"Text","Format":"text\/html","Identifier":"\u00a7 64.2-779.10","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> As used in this section:\n\t\t\t“Beneficiary with a disability<\/span>” means a beneficiary of a first trust<\/span> who the special-needs fiduciary<\/span> believes may qualify for governmental benefits<\/span> based on disability, whether or not the beneficiary currently receives those benefits or is an individual who has been determined to be an incapacitated person<\/span>.\n\t\t\t“Governmental benefits<\/span>” means financial aid or services from a state<\/span>, federal, or other public agency.\n\t\t\t“Special-needs fiduciary<\/span>” means, with respect to a trust that has a beneficiary with a disability<\/span>: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> A trustee<\/span> or other fiduciary<\/span>, other than a settlor, that has discretion to distribute part or all of the principal of a first trust<\/span> to one or more current beneficiaries; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> If no trustee<\/span> or fiduciary<\/span> has discretion under subdivision 1, a trustee<\/span> or other fiduciary<\/span>, other than a settlor, that has discretion to distribute part or all of the income of the first trust<\/span> to one or more current beneficiaries; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> If no trustee<\/span> or fiduciary<\/span> has discretion under subdivisions 1 and 2, a trustee<\/span> or other fiduciary<\/span>, other than a settlor, that is required to distribute part or all of the income or principal of the first trust<\/span> to one or more current beneficiaries.\n\t\t\t\t“Special-needs trust<\/span>” means a trust the trustee<\/span> believes would not be considered a resource for purposes of determining whether a beneficiary with a disability<\/span> is eligible for governmental benefits<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> A special-needs fiduciary<\/span> may exercise the decanting power<\/span> under \u00a7 64.2-779.8<\/a> over the income or principal of a first trust<\/span>, including a first trust<\/span> under which the fiduciary<\/span> has only limited distributive discretion as defined in subsection A of \u00a7 64.2-779.9<\/a>, as if the fiduciary<\/span> had authority to distribute income or principal to a beneficiary with a disability<\/span> subject to expanded distributive discretion<\/span> if: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> A second trust<\/span> is a special-needs trust<\/span> that benefits the beneficiary with a disability<\/span>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The special-needs fiduciary<\/span> determines that exercise of the decanting power<\/span> will<\/span> further the purposes of the first trust<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> In an exercise of the decanting power<\/span> under this section, the following rules apply: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Notwithstanding subdivision C 2 of § 64.2-779.8<\/a>, the interest in the second trust<\/span> of a beneficiary with a disability<\/span> may:\n\t\t\t\ta. Be a pooled trust as defined by Medicaid law<\/span> for the benefit of the beneficiary with a disability<\/span> under 42 U.S.C. § 1396p(d)(4)(C); or\n\t\t\t\tb. Contain payback provisions complying with reimbursement requirements of Medicaid law<\/span> under 42 U.S.C. § 1396p(d)(4)(A). <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Subdivision C 3 of § 64.2-779.8<\/a> does not apply to the interests of the beneficiary with a disability<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Except as affected by any change to the interests of the beneficiary with a disability<\/span>, the second trust<\/span>, or if there are two or more second trusts<\/span>, the second trusts<\/span> in the aggregate, must grant each other beneficiary of the first trust<\/span> beneficial interests in the second trusts<\/span> that are substantially similar to the beneficiary’s beneficial interests in the first trust<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nTRUST FOR BENEFICIARY WITH DISABILITY (\u00a7 64.2-779.10)\n\nA. As used in this section:\n\t\t\t“Beneficiary with a disability” means a beneficiary of a first\ntrust who the special-needs fiduciary believes may qualify for governmental\nbenefits based on disability, whether or not the beneficiary currently receives\nthose benefits or is an individual who has been determined to be an\nincapacitated person.\n\t\t\t“Governmental benefits” means financial aid or services from a\nstate, federal, or other public agency.\n\t\t\t“Special-needs fiduciary” means, with respect to a trust that has\na beneficiary with a disability:\n\n 1. A trustee or other fiduciary, other than a settlor, that has discretion to\n distribute part or all of the principal of a first trust to one or more\n current beneficiaries;\n\n 2. If no trustee or fiduciary has discretion under subdivision 1, a trustee or\n other fiduciary, other than a settlor, that has discretion to distribute part\n or all of the income of the first trust to one or more current beneficiaries;\n or\n\n 3. If no trustee or fiduciary has discretion under subdivisions 1 and 2, a\n trustee or other fiduciary, other than a settlor, that is required to\n distribute part or all of the income or principal of the first trust to one or\n more current beneficiaries.\n \t\t\t\t“Special-needs trust” means a trust the trustee believes would\n not be considered a resource for purposes of determining whether a beneficiary\n with a disability is eligible for governmental benefits.\n\nB. A special-needs fiduciary may exercise the decanting power under \u00a7\n64.2-779.8 over the income or principal of a first trust, including a first\ntrust under which the fiduciary has only limited distributive discretion as\ndefined in subsection A of \u00a7 64.2-779.9, as if the fiduciary had authority to\ndistribute income or principal to a beneficiary with a disability subject to\nexpanded distributive discretion if:\n\n 1. A second trust is a special-needs trust that benefits the beneficiary with\n a disability; and\n\n 2. The special-needs fiduciary determines that exercise of the decanting power\n will further the purposes of the first trust.\n\nC. In an exercise of the decanting power under this section, the following rules\napply:\n\n 1. Notwithstanding subdivision C 2 of § 64.2-779.8, the interest in the\n second trust of a beneficiary with a disability may:\n \t\t\t\ta. Be a pooled trust as defined by Medicaid law for the benefit of the\n beneficiary with a disability under 42 U.S.C. § 1396p(d)(4)(C); or\n \t\t\t\tb. Contain payback provisions complying with reimbursement requirements of\n Medicaid law under 42 U.S.C. § 1396p(d)(4)(A).\n\n 2. Subdivision C 3 of § 64.2-779.8 does not apply to the interests of the\n beneficiary with a disability.\n\n 3. Except as affected by any change to the interests of the beneficiary with a\n disability, the second trust, or if there are two or more second trusts, the\n second trusts in the aggregate, must grant each other beneficiary of the first\n trust beneficial interests in the second trusts that are substantially similar\n to the beneficiary’s beneficial interests in the first trust.\n\nHISTORY: 2017, c. 592.","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}}