                                 CODE OF VIRGINIA

GIFTS (§ 64.2-1638)

A. In this section, a gift &#8220;for the benefit of&#8221; a person includes a
gift to a trust, a custodial trust under the Uniform Custodial Trust Act (&#xA7;
64.2-900 et seq.), an account under the Uniform Transfers to Minors Act (&#xA7;
64.2-1900 et seq.), and a tuition savings account or prepaid tuition plan as
defined under Internal Revenue Code 26 U.S.C. &#xA7; 529, as amended.

B. Unless the power of attorney otherwise provides, language in a power of
attorney granting general authority with respect to gifts authorizes the agent
only to:

   1. Make outright to, or for the benefit of, a person a gift of any of the
   principal&#8217;s property, including by the exercise of a presently
   exercisable general power of appointment held by the principal, in an amount
   per donee not to exceed the annual dollar limits of the federal gift tax
   exclusion under Internal Revenue Code 26 U.S.C. &#xA7; 2503 (b), as amended,
   without regard to whether the federal gift tax exclusion applies to the gift,
   or if the principal&#8217;s spouse agrees to consent to a split gift pursuant
   to Internal Revenue Code 26 U.S.C. &#xA7; 2513, as amended, in an amount per
   donee not to exceed twice the annual federal gift tax exclusion limit; and

   2. Consent, pursuant to Internal Revenue Code 26 U.S.C. &#xA7; 2513, as
   amended, to the splitting of a gift made by the principal&#8217;s spouse in an
   amount per donee not to exceed the aggregate annual gift tax exclusions for
   both spouses.

C. An agent may make a gift of the principal&#8217;s property only as the agent
determines is consistent with the principal&#8217;s objectives if actually known
by the agent and, if unknown, as the agent determines is consistent with the
principal&#8217;s best interest based on all relevant factors, including:

   1. The value and nature of the principal&#8217;s property;

   2. The principal&#8217;s foreseeable obligations and need for maintenance;

   3. Minimization of taxes, including income, estate, inheritance,
   generation-skipping transfer, and gift taxes;

   4. Eligibility for a benefit, a program, or assistance under a statute or
   regulation; and

   5. The principal&#8217;s personal history of making or joining in making
   gifts.

HISTORY: 2010, cc. 455, 632, § 26-111; 2012, c. 614.