                                 CODE OF VIRGINIA

APPLICATION (§ 64.2-779.27)

A. Except as otherwise provided in subsection B and § 64.2-779.28, this article
applies to a trust that has its principal place of administration in the
Commonwealth and that:

   1. Is created on or after July 1, 2020;

   2. Is amended by a settlor on or after July 1, 2020;

   3. Is amended or modified on or after July 1, 2020, by a nonjudicial
   settlement agreement under &#xA7; 64.2-709, by a second-trust instrument under
   the Uniform Trust Decanting Act (&#xA7; 64.2-779.1 et seq.), or by the court;
   or

   4. In the case of any trust not described in subdivision A 1, A 2, or A 3, was
   made subject to subsection E of &#xA7; 64.2-770, as it existed prior to the
   effective date of this article, by specific reference in the trust instrument.

B. In the case of a trust described in subdivision A 2 or A 3, this article
applies only to a decision or action on or after the date of the first such
amendment or modification.

C. Any trust, decision, or action to which this article does not apply shall be
governed by the following rules:

   1. If the terms of a trust confer upon a person other than the settlor of a
   revocable trust power to direct certain actions of the trustee, the trustee
   shall act in accordance with an exercise of the power unless the attempted
   exercise is manifestly contrary to the terms of the trust or the trustee knows
   the attempted exercise would constitute a serious breach of a fiduciary duty
   that the person holding the power owes to the beneficiaries of the trust.

   2. The terms of a trust may confer upon a trustee or other person a power to
   direct the modification or termination of the trust.

   3. A person, other than a beneficiary, who holds a power to direct is
   presumptively a fiduciary who, as such, is required to act in good faith with
   regard to the purposes of the trust and the interests of the beneficiaries.
   The holder of a power to direct is liable for any loss that results from
   breach of a fiduciary duty.

HISTORY: 2020, c. 768.