                                 CODE OF VIRGINIA

PRINCIPAL PLACE OF ADMINISTRATION (§ 64.2-706)

A. Without precluding other means for establishing a sufficient connection with
the designated jurisdiction, terms of an inter vivos trust designating the
principal place of administration are valid and controlling if:

   1. A trustee&#8217;s principal place of business is located in or a trustee is
   a resident of the designated jurisdiction;

   2. A trust director&#8217;s principal place of business is located in or a
   trust director is a resident of the designated jurisdiction; or

   3. All or part of the administration occurs in the designated jurisdiction.

B. Without precluding the right of the court to order, approve, or disapprove a
transfer, the trustee of an inter vivos trust may transfer the trust&#8217;s
principal place of administration to another state or to a jurisdiction outside
of the United States that is appropriate to the trust&#8217;s purposes, its
administration, and the interests of the beneficiaries.

C. When the proposed transfer of a trust&#8217;s principal place of
administration is to another state or to a jurisdiction outside of the United
States, the trustee shall notify the qualified beneficiaries of the proposed
transfer not less than 60 days before initiating the transfer. A corporate
trustee that maintains a place of business in the Commonwealth where one or more
trust officers are available on a regular basis for personal contact with trust
customers and beneficiaries shall not be deemed to have transferred its
principal place of administration if all or significant portions of the
administration of the trust are performed outside the Commonwealth. The notice
of proposed transfer shall include:

   1. The name of the jurisdiction to which the principal place of administration
   is to be transferred;

   2. The address and telephone number at the new location at which the trustee
   can be contacted;

   3. An explanation of the reasons for the proposed transfer;

   4. The date on which the proposed transfer is anticipated to occur; and

   5. The date, not less than 60 days after the giving of the notice, by which
   the qualified beneficiary shall notify the trustee of an objection to the
   proposed transfer.

D. The authority of a trustee under this section to transfer a trust&#8217;s
principal place of administration to another state or to a jurisdiction outside
of the United States terminates if a qualified beneficiary notifies the trustee
of an objection to the proposed transfer on or before the date specified in the
notice.

E. In connection with a transfer of the trust&#8217;s principal place of
administration, the trustee may transfer some or all of the trust property to a
successor trustee designated in the terms of the trust or appointed pursuant to
&#xA7; 64.2-757.

F. The court, for good cause shown, may transfer the principal place of
administration of a testamentary trust to another state or to a jurisdiction
outside of the United States upon such conditions, if any, as it may deem
appropriate.

HISTORY: 2005, c. 935, § 55-541.08; 2012, c. 614; 2020, c. 768.