                                 CODE OF VIRGINIA

REIMBURSEMENT OF INCOME FROM PRINCIPAL (§ 64.2-1067)

A. If a fiduciary makes or expects to make an income disbursement described in
subsection B, the fiduciary may transfer an appropriate amount from principal to
income in one or more accounting periods to reimburse income.

B. To the extent the fiduciary has not been and does not expect to be reimbursed
by a third party, income disbursements to which subsection A applies include:

   1. An amount chargeable to principal but paid from income because principal is
   illiquid;

   2. A disbursement made to prepare property for sale, including improvements
   and commissions; and

   3. A disbursement described in subsection A of &#xA7; 64.2-1065.

C. If an asset whose ownership gives rise to an income disbursement becomes
subject to a successive interest after an income interest ends, the fiduciary
may continue to make transfers under subsection A.

HISTORY: 2022, c. 354.