                                 CODE OF VIRGINIA

DISTRIBUTION OF ASSETS BY FIDUCIARIES IN SATISFACTION OF PECUNIARY BEQUESTS OR
TRANSFERS IN TRUST OF PECUNIARY AMOUNT (§ 64.2-428)

A. Where a will or trust agreement authorizes or directs the fiduciary to
satisfy wholly or partly in kind a pecuniary bequest or transfer in trust of a
pecuniary amount, unless the instrument shall otherwise expressly provide, the
assets selected by the fiduciary for that purpose shall be valued at their
respective values on the date of their distribution.

B. Whenever a fiduciary under the provisions of a will or other governing
instrument is required to satisfy a pecuniary bequest or transfer in trust in
favor of the testator&#8217;s or donor&#8217;s spouse and is authorized to
satisfy such bequest or transfer by selection and distribution of assets in
kind, and the will or other governing instrument further provides that the
assets to be so distributed shall or may be valued by some standard other than
their fair market value on the date of distribution, the fiduciary, unless the
will or other governing instrument otherwise specifically directs, shall
distribute assets, including cash, in a manner that is fairly representative of
appreciation or depreciation in the value of all property available for
distribution in satisfaction of such pecuniary bequest or transfer. This
subsection shall not prevent a fiduciary from carrying out the provisions of the
will or other governing instrument that require the fiduciary, in order to
implement such a bequest or transfer, to distribute assets, including cash,
having an aggregate fair market value at the date of distribution amounting to
no less than the amount of the pecuniary bequest or transfer as finally
determined for federal estate tax purposes.

C. Any fiduciary having discretionary powers under a will or other governing
instrument with respect to the selection of assets to be distributed in
satisfaction of a pecuniary bequest or transfer in trust in favor of the
testator&#8217;s or donor&#8217;s spouse shall be authorized to enter into
agreements with the Commissioner of Internal Revenue of the U.S. Department of
the Treasury and other taxing authorities requiring the fiduciary to exercise
the fiduciary&#8217;s discretion so that cash and other properties distributed
in satisfaction of such bequest or transfer in trust will be fairly
representative of the appreciation or depreciation in value of all property then
available for distribution in satisfaction of such bequest or transfer in trust,
and any such agreement heretofore entered into after April 1, 1964, is hereby
validated. Any such fiduciary shall be authorized to enter into any other
agreement not in conflict with the express terms of the will or other governing
instrument that may be necessary or advisable in order to secure for federal
estate tax purposes the appropriate marital deduction available under the
Internal Revenue Code, and to do and perform all acts incident to securing such
deduction.

D. Where a will or trust agreement directs the fiduciary to satisfy a pecuniary
or fractional bequest or transfer in trust of a pecuniary amount or fractional
share in favor of the testator&#8217;s or donor&#8217;s spouse with amounts or
assets having a value equal to the maximum marital deduction available under the
Internal Revenue Code, the interest of such spouse shall vest immediately upon
the testator&#8217;s death in the case of a will, and upon the execution of the
trust agreement in the case of a trust, regardless of when the exact amount of
the bequest or transfer is finally determined.

HISTORY: Code 1950, § 64-71.2; 1966, c. 441; 1968, c. 656, § 64.1-74; 1978, c.
481; 2012, c. 614.