                                 CODE OF VIRGINIA

HOW CERTAIN TRUST PROVISIONS, BEQUESTS, AND DEVISES TO BE CONSTRUED;
NONADEMPTION IN CERTAIN CASES (§ 64.2-415)

A. As used in this section:
			&#8220;Incapacitated&#8221; means impairment by reason of mental illness,
intellectual disability, physical illness or disability, chronic use of drugs,
chronic intoxication, or other cause to the extent of lacking sufficient
understanding or capacity to make or communicate responsible decisions.
			&#8220;Revocable,&#8221; &#8220;settlor,&#8221; &#8220;trust
instrument,&#8221; and &#8220;trustee&#8221; have the same meanings as provided
in &#xA7; 64.2-701.

B. Unless a contrary intention appears in the will or trust instrument:

   1. A bequest or trust provision requiring distribution by reason of the
   settlor&#8217;s death of specific securities, whether or not expressed in
   number of shares, shall include as much of the securities as is part of the
   estate or is or becomes part of the trust by reason of the testator&#8217;s or
   settlor&#8217;s death, any additional or other securities of the same entity
   owned by the testator or trustee by reason of action initiated by the entity,
   excluding any securities acquired by the exercise of purchase options, and any
   securities of another entity acquired with respect to the specific securities
   mentioned in the bequest or trust provision as a result of a merger,
   consolidation, reorganization, or other similar action initiated by the
   entity;

   2. A bequest, devise, or trust provision requiring distribution by reason of
   the settlor&#8217;s death of specific property shall include the amount of any
   condemnation award for the taking of the property that remains unpaid at death
   and any proceeds unpaid at death on fire and casualty insurance on the
   property; and

   3. A bequest or devise of specific property shall, in addition to such
   property that remains part of the estate of the testator, be deemed to be a
   bequest of a pecuniary amount if such specific property, during the life of
   the testator and while he is under a disability, was sold by a conservator,
   guardian, or committee for the testator, or if proceeds of fire or casualty
   insurance as to such property are paid to the conservator, guardian, or
   committee for the testator. For purposes of this subdivision, the pecuniary
   amount shall be the net sale price or insurance proceeds, reduced by the sums
   received under subdivision 2. This subdivision shall not apply if, after the
   sale or casualty, it is adjudicated that the disability of the testator had
   ceased and the testator survived the adjudication by one year.

C. Unless a contrary intention appears in a testator&#8217;s will or durable
power of attorney, a bequest or devise of specific property shall, in addition
to such property that remains part of the estate of the testator, be deemed to
be a bequest of a pecuniary amount if such specific property, during the life of
the testator and while he is incapacitated, was sold by an agent acting within
the authority of a durable power of attorney for the testator, or if proceeds of
fire or casualty insurance as to such property are paid to the agent. For
purposes of this subsection, (i) the pecuniary amount shall be the net sale
price or insurance proceeds, reduced by the sums received under subdivision B 2,
(ii) no adjudication of the testator&#8217;s incapacity before death is
necessary, and (iii) the acts of an agent within the authority of a durable
power of attorney are rebuttably presumed to be for an incapacitated testator.
This subsection shall not apply (a) if the agent&#8217;s sale of the specific
property or receipt of the insurance proceeds is thereafter ratified by the
testator or (b) to a power of attorney limited to one or more specific purposes.

D. Unless a contrary intention appears in the will, a devise that would describe
a leasehold estate, if the testator had no freehold estate that could be
described by the devise, shall be construed to include such a leasehold estate.

E. Unless a contrary intention appears in the trust instrument, a provision
requiring distribution of specific property by reason of the death of the
settlor shall, in addition to such property that is or becomes part of the trust
by reason of the settlor&#8217;s death, be deemed to be a distribution of a
pecuniary amount if, while the settlor was incapacitated, (i) such specific
property was sold by the trustee or (ii) the proceeds of fire or casualty
insurance as to such property were paid to the trustee. For purposes of this
subsection, the pecuniary amount shall be the net sale price or insurance
proceeds, reduced by the sums received under subdivision B 2. For purposes of
this subsection, no adjudication of the settlor&#8217;s incapacity before death
is necessary. This subsection shall not apply if the trustee&#8217;s sale of the
specific property or receipt of the insurance proceeds is thereafter ratified by
the settlor.

F. This section applies to trusts and trust provisions only to the extent the
trust instrument or provision is revocable immediately before the
settlor&#8217;s death on or after July 1, 2018, and the distribution occurs by
reason of the settlor&#8217;s death and is of property that is or becomes part
of the trust by reason of the settlor&#8217;s death.

HISTORY: Code 1950, § 64-66; 1968, c. 656, § 64.1-66; 1985, c. 429, §
64.1-62.3; 1995, c. 381; 2012, cc. 476, 507, 614; 2018, c. 44.