                                 CODE OF VIRGINIA

PRINCIPAL RECEIPTS (§ 64.2-1051)

A fiduciary shall allocate to principal:

1. To the extent not allocated under this chapter, an asset received from:
			a. An individual during the individual&#8217;s lifetime;
			b. An estate;
			c. A trust on termination of an income interest; or
			d. A payor under a contract naming the fiduciary as beneficiary;

2. Except as otherwise provided in this article, money or other property
received from the sale, exchange, liquidation, or change in form of a principal
asset;

3. An amount recovered from a third party to reimburse the fiduciary because of
a disbursement described in subsection A of &#xA7; 64.2-1065 or for another
reason to the extent not based on loss of income;

4. Proceeds of property taken by eminent domain, except that proceeds awarded
for loss of income in an accounting period are income if a current income
beneficiary had a mandatory income interest during the period;

5. Net income received in an accounting period during which there is no
beneficiary to which a fiduciary may or must distribute income; and

6. Other receipts as provided in Article 6 (&#xA7; 64.2-1055 et seq.).

HISTORY: 2022, c. 354.