                                 CODE OF VIRGINIA

APPLICATION; DUTIES AND REMEDIES (§ 64.2-1040)

A. Except as otherwise provided in subsection B, this article applies to:

   1. An income trust, unless the terms of the trust expressly prohibit use of
   this article by a specific reference to this article or an explicit expression
   of intent that net income not be calculated as a unitrust amount; and

   2. An express unitrust, except to the extent the terms of the trust
   explicitly:
   				a. Prohibit use of this article by a specific reference to this article;
   				b. Prohibit conversion to an income trust; or
   				c. Limit changes to the method of calculating the unitrust amount.

B. This article does not apply to a trust described in &#xA7; 170(f)(2)(B),
642(c)(5), 664(d), 2702(a)(3)(A)(ii) or (iii), or 2702(b) of the Internal
Revenue Code of 1986, as amended.

C. An income trust to which this article applies under subdivision A 1 may be
converted to a unitrust under this article regardless of the terms of the trust
concerning distributions. Conversion to a unitrust under this article does not
affect other terms of the trust concerning distributions of income or principal.

D. This article applies to an estate only to the extent a trust is a beneficiary
of the estate. To the extent of the trust&#8217;s interest in the estate, the
estate may be administered as a unitrust, the administration of the estate as a
unitrust may be discontinued, or the percentage or method used to calculate the
unitrust amount may be changed, in the same manner as for a trust under this
article.

E. This article does not create a duty to take or consider action under this
article or to inform a beneficiary about the applicability of this article.
			F A fiduciary that in good faith takes or fails to take an action under this
article is not liable to a person affected by the action or inaction.

HISTORY: 2022, c. 354.