                                 CODE OF VIRGINIA

AUTHORITY OF FIDUCIARY (§ 64.2-1041)

A. A fiduciary, without court approval, by complying with subsections B and F,
may:

   1. Convert an income trust to a unitrust if the fiduciary adopts in a record a
   unitrust policy for the trust providing:
   				a. That in administering the trust the net income of the trust will be a
   unitrust amount rather than net income determined without regard to this
   article; and
   				b. The percentage and method used to calculate the unitrust amount;

   2. Change the percentage or method used to calculate a unitrust amount for a
   unitrust if the fiduciary adopts in a record a unitrust policy or an amendment
   or replacement of a unitrust policy providing changes in the percentage or
   method used to calculate the unitrust amount; or

   3. Convert a unitrust to an income trust if the fiduciary adopts in a record a
   determination that, in administering the trust, the net income of the trust
   will be net income determined without regard to this article rather than a
   unitrust amount.

B. A fiduciary may take an action under subsection A if:

   1. The fiduciary determines that the action will assist the fiduciary to
   administer a trust impartially;

   2. The fiduciary sends a notice in a record, in the manner required by &#xA7;
   64.2-1042, describing and proposing to take the action;

   3. The fiduciary sends a copy of the notice under subdivision 2 to each
   settlor of the trust that is:
   				a. If an individual, living; or
   				b. If not an individual, in existence;

   4. At least one member of each class of the qualified beneficiaries determined
   under &#xA7; 64.2-701, other than the Attorney General, receiving the notice
   under subdivision 2 is:
   				a. If an individual, legally competent;
   				b. If not an individual, in existence; or
   				c. Represented in the manner provided in Article 3 (&#xA7; 64.2-714 et
   seq.) of Chapter 7; and

   5. The fiduciary does not receive, by the date specified in the notice under
   subdivision D 5 of &#xA7; 64.2-1042, an objection in a record to the action
   proposed under subdivision 2 from a person to which the notice under
   subdivision 2 is sent.

C. If a fiduciary receives, not later than the date stated in the notice under
subdivision D 5 of § 64.2-1042, an objection in a record described in
subdivision D 4 of § 64.2-1042 to a proposed action, the fiduciary or a
beneficiary may request the court to have the proposed action taken as proposed,
taken with modifications, or prevented. A person described in subsection A of §
64.2-1042 may oppose the proposed action in the proceeding under this
subsection, whether or not the person:

   1. Consented under subsection C of &#xA7; 64.2-1042; or

   2. Objected under subdivision D 4 of &#xA7; 64.2-1042.

D. If, after sending a notice under subdivision B 2, a fiduciary decides not to
take the action proposed in the notice, the fiduciary shall notify in a record
each person described in subsection A of &#xA7; 64.2-1042 of the decision not to
take the action and the reasons for the decision.

E. If a beneficiary requests in a record that a fiduciary take an action
described in subsection A and the fiduciary declines to act or does not act
within 90 days after receiving the request, the beneficiary may request the
court to direct the fiduciary to take the action requested.

F. In deciding whether and how to take an action authorized by subsection A, or
whether and how to respond to a request by a beneficiary under subsection E, a
fiduciary shall consider all factors relevant to the trust and the
beneficiaries, including relevant factors in subsection E of &#xA7; 64.2-1036.

G. A fiduciary may release or delegate the power to convert an income trust to a
unitrust under subdivision A 1, change the percentage or method used to
calculate a unitrust amount under subdivision A 2, or convert a unitrust to an
income trust under subdivision A 3, for a reason described in subsection G of
&#xA7; 64.2-1038 and in the manner described in subsection H of &#xA7;
64.2-1038.

HISTORY: 2022, c. 354.