CODE OF VIRGINIA

APPLICABLE VALUE (§ 64.2-1045)

A. A unitrust policy must provide the method for determining the fair market
value of an asset for the purpose of determining the unitrust amount, including:

   1. The frequency of valuing the asset, which need not require a valuation in
   every period; and

   2. The date for valuing the asset in each period in which the asset is valued.

B. Except as otherwise provided in subdivision B 2 of § 64.2-1047, a unitrust
policy may provide methods for determining the amount of the net fair market
value of the trust to take into account in determining the applicable value,
including:

   1. Obtaining an appraisal of an asset for which fair market value is not
   readily available;

   2. Exclusion of specific assets or groups or types of assets;

   3. Other exceptions or modifications of the treatment of specific assets or
   groups or types of assets;

   4. Identification and treatment of cash or property held for distribution;

   5. Use of:
   				a. An average of fair market values over a stated number of preceding
   periods; or
   				b. Another mathematical blend of fair market values over a stated number
   of preceding periods;

   6. A limit on how much the applicable value of all assets, groups of assets,
   or individual assets may increase over:
   				a. The corresponding applicable value for the preceding period; or
   				b. A mathematical blend of applicable values over a stated number of
   preceding periods;

   7. A limit on how much the applicable value of all assets, groups of assets,
   or individual assets may decrease below:
   				a. The corresponding applicable value for the preceding period; or
   				b. A mathematical blend of applicable values over a stated number of
   preceding periods;

   8. The treatment of accrued income and other features of an asset that affect
   value; and

   9. Determining the liabilities of the trust, including treatment of
   liabilities to conform with the treatment of assets under subdivisions 1
   through 8.

HISTORY: 2022, c. 354.