                                 CODE OF VIRGINIA

LIQUIDATING ASSET (§ 64.2-1057)

A. As used in this section, &#8220;liquidating asset&#8221; means an asset whose
value will diminish or terminate because the asset is expected to produce
receipts for a limited time. &#8220;Liquidating asset&#8221; includes a
leasehold, patent, copyright, royalty right, and right to receive payments
during a period of more than one year under an arrangement that does not provide
for the payment of interest on the unpaid balance.

B. This section does not apply to a receipt subject to &#xA7; 64.2-1048,
64.2-1056, 64.2-1058, 64.2-1059, 64.2-1061, 64.2-1062, 64.2-1063, or 64.2-1066.

C. A fiduciary shall allocate:

   1. To income:
   				a. A receipt produced by a liquidating asset, to the extent the receipt
   does not exceed four percent of the value of the asset; or
   				b. If the fiduciary cannot determine the value of the asset, 10 percent of
   the receipt; and

   2. To principal, the balance of the receipt.

HISTORY: 2022, c. 354.