                                 CODE OF VIRGINIA

TRUST LIMITATION ON DECANTING (§ 64.2-779.12)

A. An authorized fiduciary may not exercise the decanting power to the extent
the first-trust instrument expressly prohibits exercise of:

   1. The decanting power; or

   2. A power granted by state law to the fiduciary to distribute part or all of
   the income or principal of the trust to another trust or to modify the trust.

B. Exercise of the decanting power is subject to any restriction in the
first-trust instrument that expressly applies to exercise of:

   1. The decanting power; or

   2. A power granted by state law to a fiduciary to distribute part or all of
   the income or principal of the trust to another trust or to modify the trust.

C. A general prohibition of the amendment or revocation of a first trust, a
spendthrift clause, or a clause restraining the voluntary or involuntary
transfer of a beneficiary&#8217;s interest does not preclude exercise of the
decanting power.

D. Subject to subsections A and B, an authorized fiduciary may exercise the
decanting power under this article even if the first-trust instrument permits
the authorized fiduciary or another person to modify the first-trust instrument
or to distribute part or all of the income or principal of the first trust to
another trust.

E. If a first-trust instrument contains an express prohibition described in
subsection A or an express restriction described in subsection B, the provision
must be included in the second-trust instrument.

HISTORY: 2017, c. 592.