                                 CODE OF VIRGINIA

SPECIAL TAX BENEFITS; OTHER RULES (§ 64.2-1047)

A. A unitrust policy may:

   1. Provide methods and standards for:
   				a. Determining the timing of distributions;
   				b. Making distributions in cash or in kind or partly in cash and partly in
   kind; or
   				c. Correcting an underpayment or overpayment to a beneficiary based on the
   unitrust amount if there is an error in calculating the unitrust amount;

   2. Specify sources and the order of sources, including categories of income
   for federal income tax purposes, from which distributions of a unitrust amount
   are paid; or

   3. Provide other standards and rules the fiduciary determines serve the
   interests of the beneficiaries.

B. If a trust qualifies for a special tax benefit or a fiduciary is not an
independent person:

   1. The unitrust rate established under &#xA7; 64.2-1044 may not be less than
   three percent or more than five percent;

   2. The only provisions of &#xA7; 64.2-1045 that apply are subsection A and
   subdivisions B 1, B 4, B 5 a, and B 9 of &#xA7; 64.2-1045;

   3. The only period that may be used under &#xA7; 64.2-1046 is a calendar year
   under subdivision A 1 of &#xA7; 64.2-1046; and

   4. The only other provisions of &#xA7; 64.2-1046 that apply are subdivisions B
   2 a and B 3 of &#xA7; 64.2-1046.

HISTORY: 2022, c. 354.