                                 CODE OF VIRGINIA

PROHIBITIONS AS TO TRUST THAT IS DEEMED A SPLIT-INTEREST TRUST (§ 64.2-738)

Every trust that is a split-interest trust, as described in § 4947(a)(2) of the
Internal Revenue Code, unless its governing instrument expressly includes
specific provisions to the contrary, shall not engage in any act of
self-dealing, as defined in § 4941(d) of the Internal Revenue Code, retain any
excess business holdings, as defined in § 4943(c) of the Internal Revenue Code,
that would give rise to liability for the tax imposed by § 4943(a) of the
Internal Revenue Code, make any investments in such manner as to give rise to
liability for the tax imposed by § 4944 of the Internal Revenue Code, or make
any taxable expenditures, as defined in § 4945(d) of the Internal Revenue Code.
This section shall not apply with respect to:

1. Any amounts payable under the terms of such trust to income beneficiaries,
unless a deduction was allowed under &#xA7; 170(f)(2)(B), 2055(e)(2)(B), or
2522(c)(2)(B) of the Internal Revenue Code;

2. Any amounts in trust other than amounts for which a deduction was allowed
under &#xA7; 170, 545(b)(2), 556(b)(2), 642(c), 2055, 2106(a)(2), or 2522 of the
Internal Revenue Code, if such other amounts are segregated from amounts for
which no deduction was allowable; or

3. Any amounts transferred in trust before May 27, 1969.

HISTORY: 2005, c. 935, § 55-544.20; 2012, c. 614.