                                 CODE OF VIRGINIA

MODIFICATION OR TERMINATION OF UNECONOMIC TRUST (§ 64.2-732)

A. After notice to the qualified beneficiaries, the trustee of a trust
consisting of trust property having a total value less than $250,000 may
terminate the trust without court approval if the trustee concludes that the
value of the trust property is insufficient to justify the cost of
administration. Notice required by this section shall be sent in accordance with
&#xA7; 64.2-707.

B. The court may modify or terminate a trust or remove the trustee and appoint a
different trustee if it determines that the value of the trust property is
insufficient to justify the cost of administration.

C. Upon termination of a trust under this section, the trustee shall distribute
the trust property in a manner consistent with the purposes of the trust and may
simultaneously utilize the provisions of &#xA7; 64.2-779.

D. This section does not apply to an easement for conservation or preservation.

E. Expenses incurred by the trustee incident to the termination of a trust
pursuant to this section shall be paid by the trust estate.

HISTORY: 2005, c. 935, § 55-544.14; 2012, c. 614; 2024, cc. 282, 336; 2025, c.
148.