                                 CODE OF VIRGINIA

LIMITATION ON POWERS (§ 6.2-1080)

A. In the exercise of any power held by a private trust company in its capacity
as a fiduciary, the private trust company shall have a duty not to exercise any
power in such a way as to deprive the estate, trust, or other entity for which
it acts as a fiduciary of an otherwise available tax exemption, deduction, or
credit for tax purposes or deprive a donor of trust assets of a tax exemption,
deduction, or credit or operate to impose a tax upon a donor or other person as
owner of any portion of the estate, trust, or otherwise.

B. Without limitation to subsection A, no family member who is a stockholder or
member or who otherwise holds an equity interest in, or is serving as a
director, officer, manager, or employee of, a private trust company shall
participate in or otherwise have a voice in any discretionary decision by the
private trust company to distribute income or principal of any trust in order to
discharge a legal obligation of the family member or for the family
member&#8217;s pecuniary benefit, unless:

   1. The exercise of the discretion is limited by an ascertainable standard
   relating to the health, education, support, or maintenance of that family
   member;

   2. The distribution is necessary for that family member&#8217;s support,
   health, or education; or

   3. The instrument governing the administration of that trust clearly so
   provides.

HISTORY: 2003, c. 910, § 6.1-32.30:7; 2010, c. 794.