                                 CODE OF VIRGINIA

CERTAIN CLAIMS FOR REIMBURSEMENT FOR PUBLIC ASSISTANCE (§ 64.2-745)

A. Notwithstanding any contrary provision in the trust instrument, if a statute
or regulation of the United States or Commonwealth requires a beneficiary to
reimburse the Commonwealth or any agency or instrumentality thereof, for public
assistance, including medical assistance, furnished or to be furnished to the
beneficiary, the Attorney General or an attorney acting on behalf of the state
agency responsible for the program may file a petition in the circuit court
having jurisdiction over the trustee requesting reimbursement. The petition may
be filed prior to obtaining a judgment. The beneficiary, the guardian of his
estate, his conservator, or his committee shall be made a party.

B. Following its review of the circumstances of the case, the court may:

   1. Order the trustee to satisfy all or part of the liability out of all or
   part of the amounts to which the beneficiary is entitled, whether presently or
   in the future, to the extent the beneficiary has the right under the trust to
   compel the trustee to pay income or principal to or for the benefit of the
   beneficiary; or

   2. Regardless of whether the beneficiary has the right to compel the trustee
   to pay income or principal to or for the benefit of the beneficiary, order the
   trustee to satisfy all or part of the liability out of all or part of any
   future payments that the trustee chooses to make to or for the benefit of the
   beneficiary in the exercise of discretion under the trust.

C. A duty in the trustee under the instrument to make disbursements in a manner
designed to avoid rendering the beneficiary ineligible for public assistance to
which he might otherwise be entitled, however, shall not be construed as a right
possessed by the beneficiary to compel such payments.

D. The court shall not issue an order pursuant to this section if the
beneficiary is a person who has a medically determined physical or mental
disability that substantially impairs his ability to provide for his care or
custody, and constitutes a substantial disability.

HISTORY: 2005, c. 935, § 55-545.03:1; 2012, c. 614; 2023, cc. 148, 149.