                                 CODE OF VIRGINIA

INSUBSTANTIAL ALLOCATION NOT REQUIRED (§ 64.2-1055)

A. If a fiduciary determines that an allocation between income and principal
required by &#xA7; 64.2-1056, 64.2-1057, 64.2-1058, 64.2-1059, or 64.2-1062 is
insubstantial, the fiduciary may allocate the entire amount to principal, unless
subsection E of &#xA7; 64.2-1038 applies to the allocation.

B. A fiduciary may presume an allocation is insubstantial under subsection A if:

   1. The amount of the allocation would increase or decrease net income in an
   accounting period, as determined before the allocation, by less than 10
   percent; and

   2. The asset producing the receipt to be allocated has a fair market value
   less than 10 percent of the total fair market value of the assets owned or
   held by the fiduciary at the beginning of the accounting period.

C. The power to make a determination under subsection A may be:

   1. Exercised by a co-fiduciary in the manner described in subsection F of
   &#xA7; 64.2-1038; or

   2. Released or delegated 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.