reglab/statecodes huggingface dataset:
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-779.9. Decanting power under limited distributive discretion

A. As used in this section, "limited distributive discretion" means a discretionary power of distribution that is limited to an ascertainable standard or a reasonably definite standard.
B. An authorized fiduciary that has limited distributive discretion over the income or principal of the first trust for benefit of one or more current beneficiaries may exercise the decanting power over the income or principal of the first trust.
C. Under this section and subject to § 64.2-779.11, a second trust may be created or administered under the law of any jurisdiction. Under this section, the second trusts, in the aggregate, must grant each beneficiary of the first trust beneficial interests that are substantially similar to the beneficial interests of the beneficiary in the first trust. A second trust that defers or postpones a contingent right of a beneficiary to receive an outright distribution of assets upon the attainment of a certain age or upon the occurrence of a specific event (a "deferred distribution") shall be substantially similar to the first trust if the second trust provides that (i) during the lifetime of the beneficiary, no portion of the income or principal attributable to the deferred distribution may be distributed to, or for the benefit of, any person other than the beneficiary and (ii) the beneficiary shall have a testamentary general power of appointment exercisable in favor of the beneficiary's estate over the deferred distribution or the deferred distribution shall be payable to the beneficiary's estate if the second trust does not terminate during the beneficiary's lifetime.
D. A power to make a distribution under a second trust for the benefit of a beneficiary who is an individual is substantially similar to a power under the first trust to make a distribution directly to the beneficiary. A distribution is for the benefit of a beneficiary if:
1. The distribution is applied for the benefit of the beneficiary;
2. The beneficiary is under a legal disability or the trustee reasonably believes the beneficiary is incapacitated, and the distribution is made as permitted under this chapter; or
3. The distribution is made as permitted under the terms of the first-trust instrument and the second-trust instrument for the benefit of the beneficiary.
E. If an authorized fiduciary has limited distributive discretion over part but not all of the income or principal of a first trust, the fiduciary may exercise the decanting power under this section over that part of the income or principal over which the authorized fiduciary has limited distributive discretion.
2017, c. 592.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-779.10. Trust for beneficiary with disability

A. As used in this section:
"Beneficiary with a disability" means a beneficiary of a first trust who the special-needs fiduciary believes may qualify for governmental benefits based on disability, whether or not the beneficiary currently receives those benefits or is an individual who has been determined to be an incapacitated person.
"Governmental benefits" means financial aid or services from a state, federal, or other public agency.
"Special-needs fiduciary" means, with respect to a trust that has a beneficiary with a disability:
1. A trustee or other fiduciary, other than a settlor, that has discretion to distribute part or all of the principal of a first trust to one or more current beneficiaries;
2. If no trustee or fiduciary has discretion under subdivision 1, a trustee or other fiduciary, other than a settlor, that has discretion to distribute part or all of the income of the first trust to one or more current beneficiaries; or
3. If no trustee or fiduciary has discretion under subdivisions 1 and 2, a trustee or other fiduciary, other than a settlor, that is required to distribute part or all of the income or principal of the first trust to one or more current beneficiaries.
"Special-needs trust" means a trust the trustee believes would not be considered a resource for purposes of determining whether a beneficiary with a disability is eligible for governmental benefits.
B. A special-needs fiduciary may exercise the decanting power under § 64.2-779.8 over the income or principal of a first trust, including a first trust under which the fiduciary has only limited distributive discretion as defined in subsection A of § 64.2-779.9, as if the fiduciary had authority to distribute income or principal to a beneficiary with a disability subject to expanded distributive discretion if:
1. A second trust is a special-needs trust that benefits the beneficiary with a disability; and
2. The special-needs fiduciary determines that exercise of the decanting power will further the purposes of the first trust.
C. In an exercise of the decanting power under this section, the following rules apply:
1. Notwithstanding subdivision C 2 of § 64.2-779.8, the interest in the second trust of a beneficiary with a disability may:
a. Be a pooled trust as defined by Medicaid law for the benefit of the beneficiary with a disability under 42 U.S.C. § 1396p(d)(4)(C); or
b. Contain payback provisions complying with reimbursement requirements of Medicaid law under 42 U.S.C. § 1396p(d)(4)(A).
2. Subdivision C 3 of § 64.2-779.8 does not apply to the interests of the beneficiary with a disability.
3. Except as affected by any change to the interests of the beneficiary with a disability, the second trust, or if there are two or more second trusts, the second trusts in the aggregate, must grant each other beneficiary of the first trust beneficial interests in the second trusts that are substantially similar to the beneficiary's beneficial interests in the first trust.
2017, c. 592.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-779.11. Protection of charitable interest

A. As used in this section:
"Determinable charitable interest" means a charitable interest that is a right to a mandatory distribution currently, periodically, on the occurrence of a specified event, or after the passage of a specified time and that is unconditional or will be held solely for charitable purposes.
"Unconditional" means not subject to the occurrence of a specified event that is not certain to occur, other than a requirement in a trust instrument that a charitable organization be in existence or qualify under a particular provision of the United States Internal Revenue Code of 1986 on the date of the distribution, if the charitable organization meets the requirement on the date of determination.
B. If a first trust contains a determinable charitable interest, the Attorney General has the rights of a qualified beneficiary and may represent and bind the charitable interest.
C. If a first trust contains a charitable interest, the second trust or trusts may not:
1. Diminish the charitable interest;
2. Diminish the interest of an identified charitable organization that holds the charitable interest;
3. Alter any charitable purpose stated in the first-trust instrument; or
4. Alter any condition or restriction related to the charitable interest.
D. If there are two or more second trusts, the second trusts shall be treated as one trust for purposes of determining whether the exercise of the decanting power diminishes the charitable interest or diminishes the interest of an identified charitable organization for purposes of subsection C.
E. If a first trust contains a determinable charitable interest, the second trust or trusts that include a charitable interest pursuant to subsection C must be administered under the law of the Commonwealth unless:
1. The Attorney General, after receiving notice under § 64.2-779.5, fails to object in a signed record delivered to the authorized fiduciary within the notice period;
2. The Attorney General consents in a signed record to the second trust or trusts being administered under the law of another jurisdiction; or
3. The court approves the exercise of the decanting power.
F. This article does not limit the powers and duties of the Attorney General under law of the Commonwealth other than this article.
2017, c. 592.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-779.12. Trust limitation on decanting

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'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.
2017, c. 592.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-779.13. Change in compensation

A. If a first-trust instrument specifies an authorized fiduciary's compensation, the fiduciary may not exercise the decanting power to increase the fiduciary's compensation above the specified compensation unless:
1. All qualified beneficiaries of the second trust consent to the increase in a signed record; or
2. The increase is approved by the court.
B. If a first-trust instrument does not specify an authorized fiduciary's compensation, the fiduciary may not exercise the decanting power to increase the fiduciary's compensation above the compensation permitted by this chapter unless:
1. All qualified beneficiaries of the second trust consent to the increase in a signed record; or
2. The increase is approved by the court.
C. A change in an authorized fiduciary's compensation that is incidental to other changes made by the exercise of the decanting power is not an increase in the fiduciary's compensation for purposes of subsections A and B.
2017, c. 592.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-779.14. Relief from liability and indemnification

A. Except as otherwise provided in this section, a second-trust instrument may not relieve an authorized fiduciary from liability for breach of trust to a greater extent than the first-trust instrument.
B. A second-trust instrument may provide for indemnification of an authorized fiduciary of the first trust or another person acting in a fiduciary capacity under the first trust for any liability or claim that would have been payable from the first trust if the decanting power had not been exercised.
C. A second-trust instrument may not reduce fiduciary liability in the aggregate.
D. Subject to subsection C, a second-trust instrument may divide and reallocate fiduciary powers among fiduciaries, including one or more trustees, distribution advisors, investment advisors, trust protectors, or other persons, and relieve a fiduciary from liability for an act or failure to act of another fiduciary as permitted by law of the Commonwealth other than this article.
2017, c. 592.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-779.15. Removal or replacement of authorized fiduciary

An authorized fiduciary may not exercise the decanting power to modify a provision in a first-trust instrument granting another person power to remove or replace the fiduciary unless:
1. The person holding the power consents to the modification in a signed record and the modification applies only to the person;
2. The person holding the power and the qualified beneficiaries of the second trust consent to the modification in a signed record and the modification grants a substantially similar power to another person; or
3. The court approves the modification and the modification grants a substantially similar power to another person.
2017, c. 592.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-779.17. Duration of second trust

A. Subject to subsection B, a second trust may have a duration that is the same as or different from the duration of the first trust.
B. To the extent that property of a second trust is attributable to property of the first trust, the property of the second trust is subject to any rules governing maximum perpetuity, accumulation, or suspension of the power of alienation that apply to property of the first trust.
2017, c. 592.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-779.18. Need to distribute not required

An authorized fiduciary may exercise the decanting power whether or not under the first trust's discretionary distribution standard the fiduciary would have made or could have been compelled to make a discretionary distribution of income or principal at the time of the exercise.
2017, c. 592.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-779.19. Savings provision

A. If exercise of the decanting power would be effective under this article except that the second-trust instrument in part does not comply with this article, the exercise of the power is effective and the following rules apply with respect to the income or principal of the second trust attributable to the exercise of the power:
1. A provision in the second-trust instrument which is not permitted under this article is void to the extent necessary to comply with this article.
2. A provision required by this article to be in the second-trust instrument which is not contained in the instrument is deemed to be included in the instrument to the extent necessary to comply with this article.
B. If a trustee or other fiduciary of a second trust determines that subsection A applies to a prior exercise of the decanting power, the fiduciary shall take corrective action consistent with the fiduciary's duties.
2017, c. 592.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-779.20. Trust for care of animal

A. As used in this section:
"Animal trust" means a trust or an interest in a trust created to provide for the care of one or more animals.
"Protector" means a person appointed in an animal trust to enforce the trust on behalf of the animal or, if no such person is appointed in the trust, a person appointed by the court for that purpose.
B. The decanting power may be exercised over an animal trust that has a protector to the extent that the trust could be decanted under this article if each animal that benefits from the trust were an individual, if the protector consents in a signed record to the exercise of the power.
C. A protector for an animal has the rights under this article of a qualified beneficiary.
D. Notwithstanding any other provision of this article, if a first trust is an animal trust, in an exercise of the decanting power, the second trust must provide that trust property may be applied only to its intended purpose for the period the first trust benefited the animal.
2017, c. 592.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-779.22. Settlor

A. For purposes of law of the Commonwealth other than this article and subject to subsection B, a settlor of a first trust is deemed to be the settlor of the second trust with respect to the portion of the income or principal of the first trust subject to the exercise of the decanting power.
B. In determining settlor intent with respect to a second trust, the intent of a settlor of the first trust, a settlor of the second trust, and the authorized fiduciary may be considered.
2017, c. 592.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-779.23. Later-discovered property

A. Except as otherwise provided in subsection C, if exercise of the decanting power was intended to distribute all the income or principal of the first trust to one or more second trusts, later-discovered property belonging to the first trust and property paid to or acquired by the first trust after the exercise of the power is part of the trust estate of the second trust or trusts.
B. Except as otherwise provided in subsection C, if exercise of the decanting power was intended to distribute less than all the income or principal of the first trust to one or more second trusts, later-discovered property belonging to the first trust or property paid to or acquired by the first trust after exercise of the power remains part of the trust estate of the first trust.
C. An authorized fiduciary may provide in an exercise of the decanting power or by the terms of a second trust for disposition of later-discovered property belonging to the first trust or property paid to or acquired by the first trust after exercise of the power.
2017, c. 592.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-779.24. Obligations

A debt, liability, or other obligation enforceable against property of a first trust is enforceable to the same extent against the property when held by the second trust after exercise of the decanting power.
2017, c. 592.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-779.26. Definitions

As used in this article, unless the context requires a different meaning:
"Breach of trust" includes a violation by a trust director or trustee of a duty imposed on that trust director or trustee by the terms of the trust, this article, or law of the Commonwealth other than this article pertaining to trusts.
"Directed trust" means a trust for which the terms of the trust grant a power of direction.
2020, c. 768.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-779.27. Application

A. Except as otherwise provided in subsection B and § 64.2-779.28, this article applies to a trust that has its principal place of administration in the Commonwealth and that:
1. Is created on or after July 1, 2020;
2. Is amended by a settlor on or after July 1, 2020;
3. Is amended or modified on or after July 1, 2020, by a nonjudicial settlement agreement under § 64.2-709, by a second-trust instrument under the Uniform Trust Decanting Act (§ 64.2-779.1 et seq.), or by the court; or
4. In the case of any trust not described in subdivision A 1, A 2, or A 3, was made subject to subsection E of § 64.2-770, as it existed prior to the effective date of this article, by specific reference in the trust instrument.
B. In the case of a trust described in subdivision A 2 or A 3, this article applies only to a decision or action on or after the date of the first such amendment or modification.
C. Any trust, decision, or action to which this article does not apply shall be governed by the following rules:
1. If the terms of a trust confer upon a person other than the settlor of a revocable trust power to direct certain actions of the trustee, the trustee shall act in accordance with an exercise of the power unless the attempted exercise is manifestly contrary to the terms of the trust or the trustee knows the attempted exercise would constitute a serious breach of a fiduciary duty that the person holding the power owes to the beneficiaries of the trust.
2. The terms of a trust may confer upon a trustee or other person a power to direct the modification or termination of the trust.
3. A person, other than a beneficiary, who holds a power to direct is presumptively a fiduciary who, as such, is required to act in good faith with regard to the purposes of the trust and the interests of the beneficiaries. The holder of a power to direct is liable for any loss that results from breach of a fiduciary duty.
2020, c. 768.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-779.28. Exclusions

A. This article does not apply to a:
1. Power of appointment;
2. Power to appoint or remove a trustee or trust director;
3. Power of a settlor over a trust to the extent the settlor has a power to revoke the trust;
4. Power of a beneficiary over a trust to the extent the exercise or nonexercise of the power affects the beneficial interest of:
a. The beneficiary; or
b. Another beneficiary represented by the beneficiary under Article 3 (§ 64.2-714 et seq.) with respect to the exercise or nonexercise of the power;
5. Power over a trust if:
a. The terms of the trust provide that the power is held in a nonfiduciary capacity; and
b. The power must be held in a nonfiduciary capacity to achieve the settlor's tax objectives under the United States Internal Revenue Code; or
6. Power over a trust if the terms of the trust provide that the Uniform Directed Trust Act does not apply to the trust.
B. Unless the terms of a trust provide otherwise, a power granted to a person to designate a recipient of an ownership interest in or power of appointment over trust property which is exercisable while the person is not serving as a trustee is a power of appointment and not a power of direction.
2020, c. 768.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-779.29. Powers of trust director

A. Subject to § 64.2-779.30, the terms of a trust may grant a power of direction to a trust director.
B. Unless the terms of a trust provide otherwise:
1. A trust director may exercise any further power appropriate to the exercise or nonexercise of a power of direction granted to the trust director under subsection A; and
2. Trust directors with joint powers must act by majority decision.
2020, c. 768.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-779.30. Limitations on trust director

A trust director is subject to the same rules as a trustee in a like position and under similar circumstances in the exercise or nonexercise of a power of direction or further power under subdivision B 1 of § 64.2-779.29 regarding:
1. A payback provision in the terms of a trust necessary to comply with the reimbursement requirements of Medicaid law in § 1917 of the Social Security Act, 42 U.S.C. § 1396p(d)(4)(A), as amended; and
2. A charitable interest in the trust, including notice regarding the interest to the Attorney General.
2020, c. 768.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-779.31. Duty and liability of trust director

A. Subject to subsection B, with respect to a power of direction or further power under subdivision B 1 of § 64.2-779.29:
1. A trust director has the same fiduciary duty and liability in the exercise or nonexercise of the power:
a. If the power is held individually, as a sole trustee in a like position and under similar circumstances; or
b. If the power is held jointly with a trustee or another trust director, as a cotrustee in a like position and under similar circumstances; and
2. The terms of the trust may vary the trust director's duty or liability to the same extent the terms of the trust could vary the duty or liability of a trustee in a like position and under similar circumstances.
B. Unless the terms of a trust provide otherwise, if a trust director is licensed, certified, or otherwise authorized or permitted by law other than this article to provide health care in the ordinary course of the trust director's business or practice of a profession, to the extent the trust director acts in that capacity, the trust director has no duty or liability under this article.
C. The terms of a trust may impose a duty or liability on a trust director in addition to the duties and liabilities imposed under this section.
2020, c. 768.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-779.32. Duty and liability of directed trustee

A. Subject to subsection B, a directed trustee shall take reasonable action to comply with a trust director's exercise or nonexercise of a power of direction or further power under subdivision B 1 of § 64.2-779.29, and the trustee is not liable for the action.
B. A directed trustee must not comply with a trust director's exercise or nonexercise of a power of direction or further power under subdivision B 1 of § 64.2-779.29 to the extent that by complying the trustee would engage in willful misconduct.
C. An exercise of a power of direction under which a trust director may release a trustee or another trust director from liability for breach of trust is not effective if:
1. The breach involved the trustee's or other trust director's willful misconduct;
2. The release was induced by improper conduct of the trustee or other trust director in procuring that release; or
3. At the time of the release, the trust director did not know the material facts relating to the breach.
D. A directed trustee that has reasonable doubt about its duty under this section may petition the court for instructions.
E. The terms of a trust may impose a duty or liability on a directed trustee in addition to the duties and liabilities under this section.
2020, c. 768.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-779.33. Duty to provide information to trust director or trustee

A. Subject to § 64.2-779.34, a trustee shall provide information to a trust director to the extent the information is reasonably related both to:
1. The powers or duties of the trustee; and
2. The powers or duties of the trust director.
B. Subject to § 64.2-779.34, a trust director shall provide information to a trustee or another trust director to the extent the information is reasonably related both to:
1. The powers or duties of the trust director; and
2. The powers or duties of the trustee or other trust director.
C. A trustee that acts in reliance on information provided by a trust director is not liable for a breach of trust to the extent the breach resulted from the reliance, unless by so acting the trustee engages in willful misconduct.
D. A trust director that acts in reliance on information provided by a trustee or another trust director is not liable for a breach of trust to the extent the breach resulted from the reliance, unless by so acting the trust director engages in willful misconduct.
2020, c. 768.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-779.34. No duty to monitor, inform, or advise

A. Unless the terms of a trust provide otherwise:
1. A trustee does not have a duty to:
a. Monitor a trust director; or
b. Inform or give advice to a settlor, beneficiary, trustee, or trust director concerning an instance in which the trustee might have acted differently than the trust director; and
2. By taking an action described in subdivision 1, a trustee does not assume the duty excluded by subdivision 1.
B. Unless the terms of a trust provide otherwise:
1. A trust director does not have a duty to:
a. Monitor a trustee or another trust director; or
b. Inform or give advice to a settlor, beneficiary, trustee, or another trust director concerning an instance in which the trust director might have acted differently than a trustee or another trust director; and
2. By taking an action described in subdivision 1, a trust director does not assume the duty excluded by subdivision 1.
2020, c. 768.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-779.35. Limitation of action against trust director

A. An action against a trust director for breach of trust must be commenced within the same limitation period as under § 64.2-796 for an action for breach of trust against a trustee in a like position and under similar circumstances.
B. A report or accounting has the same effect on the limitation period for an action against a trust director for breach of trust that the report or accounting would have under § 64.2-796 in an action for breach of trust against a trustee in a like position and under similar circumstances.
2020, c. 768.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-779.36. Defenses in action against trust director

In an action against a trust director for breach of trust, the trust director may assert the same defenses a trustee in a like position and under similar circumstances could assert in an action for breach of trust against the trustee.
2020, c. 768.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-779.37. Jurisdiction over trust director

A. By accepting appointment as a trust director of a trust subject to this article, the trust director submits to personal jurisdiction of the courts of the Commonwealth regarding any matter related to a power or duty of the trust director.
B. This section does not preclude other methods of obtaining jurisdiction over a trust director.
2020, c. 768.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-779.38. Office of trust director

Unless the terms of a trust provide otherwise, the rules applicable to a trustee apply to a trust director regarding the following matters:
1. Acceptance under § 64.2-754;
2. Giving of bond to secure performance under § 64.2-755;
3. Reasonable compensation under § 64.2-761;
4. Resignation under § 64.2-758;
5. Removal under § 64.2-759; and
6. Vacancy and appointment of successor under § 64.2-757.
2020, c. 768.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-780. Definition of terms

As used in this article:
"Controlling document" means the will, agreement, power of attorney, court order, or other instrument creating the fiduciary powers.
"Trust" includes the assets under the control or management of the trustee.
"Trustee" includes any fiduciary as defined in § 8.01-2, an attorney-in-fact or agent acting for a principal under a written power of attorney, a custodian under § 64.2-1911, and a custodial trustee under § 64.2-906.
1999, c. 772, § 26-45.13; 2007, c. 517; 2012, c. 614.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-781. Prudent investor rule

A. Except as otherwise provided in subsection B or § 2.2-4519 or 64.2-1502, a trustee who invests and manages trust assets owes a duty to the beneficiaries of the trust to comply with the prudent investor rule set forth in this article.
B. The prudent investor rule, a default rule, may be expanded, restricted, eliminated, or otherwise altered by the provisions of a trust. A general authorization in a controlling document authorizing a trustee to invest in such assets as the trustee, in his sole discretion, may deem best, or other language purporting to expand the trustee's investment powers, shall not be construed to waive the rule of subsection A unless the controlling document expressly manifests an intention that it be waived (i) by reference to the "prudent man" or "prudent investor" rule, (ii) by reference to power of the trustee to make "speculative" investments, (iii) by an express authorization to acquire or retain a specific asset or type of asset such as a closely held business, or (iv) by other language synonymous with clause (i), (ii) or (iii). A trustee shall not be liable to a beneficiary for the trustee's good faith reliance on a waiver of the rule of subsection A.
1999, c. 772, § 26-45.3; 2012, c. 614.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-782. Standard of care; portfolio strategy; risk and return objectives

A. A trustee shall invest and manage trust assets as a prudent investor would, by considering the purposes, terms, distribution requirements, and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care, skill, and caution.
B. A trustee's investment and management decisions respecting individual assets shall be evaluated not in isolation but in the context of the trust portfolio as a whole and as a part of an overall investment strategy having risk and return objectives reasonably suited to the trust.
C. Among circumstances that a trustee shall consider in investing and managing trust assets are such of the following as are relevant to the trust or its beneficiaries:
1. General economic conditions;
2. The possible effect of inflation or deflation;
3. The expected tax consequences of investment decisions or strategies;
4. The role that each investment or course of action plays within the overall trust portfolio, which may include financial assets, interests in closely held enterprises, tangible and intangible personal property, and real property;
5. The expected total return from income and the appreciation of capital;
6. Other resources of the beneficiaries;
7. Needs for liquidity, regularity of income, and preservation or appreciation of capital; and
8. An asset's special relationship or special value, if any, to the purposes of the trust or to one or more of the beneficiaries.
D. A trustee shall make a reasonable effort to verify facts relevant to the investment and management of trust assets.
E. A trustee may invest in any kind of property or type of investment consistent with the standards of this article.
F. A trustee who has special skills or expertise, or is named trustee in reliance upon the trustee's representation that the trustee has special skills or expertise, has a duty to use those special skills or expertise.
G. A trustee may hold any policies of life insurance acquired by gift or pursuant to an express permission or direction in the governing instrument including an authority granted by subdivision B 19 of § 64.2-105 with no duty or need to (i) determine whether any such policy is or remains a proper investment, (ii) dispose of such policy in order to diversify the investments of the trust, or (iii) exercise policy options under any such contract not essential to the continuation of the life insurance provided by such contract. However, apart from these specific authorities, this subsection is not intended and shall not be construed to affect the application of the standard of judgment and care as set forth in this section. This subsection shall apply to all trusts, regardless of when established.
1999, c. 772, § 26-45.4; 2012, c. 614.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-783. Diversification by trustee

A trustee shall diversify the investments of the trust unless the trustee reasonably determines that, because of special circumstances, the purposes of the trust are better served without diversifying.
1999, c. 772, § 26-45.5; 2012, c. 614.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-784. Duties at inception of trusteeship

Within a reasonable time after accepting a trusteeship or receiving trust assets, a trustee shall review the trust assets and make and implement decisions concerning the retention and disposition of assets, in order to bring the trust portfolio into compliance with the purposes, terms, distribution requirements, and other circumstances of the trust, and with the requirements of this article.
1999, c. 772, § 26-45.6; 2012, c. 614.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-785. Loyalty and impartiality

A. A trustee shall invest and manage the trust assets solely in the interest of the beneficiaries.
B. If a trust has two or more beneficiaries, the trustee shall act impartially in investing and managing the trust assets, taking into account any differing interests of the beneficiaries.
1999, c. 772, § 26-45.7; 2012, c. 614.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-786. Investment costs

In investing and managing trust assets, a trustee may only incur costs that are appropriate and reasonable in relation to the assets, the purposes of the trust, and the skills of the trustee.
1999, c. 772, § 26-45.8; 2012, c. 614.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-787. Reviewing compliance

Compliance with the prudent investor rule is determined in light of the facts and circumstances existing at the time of a trustee's decision or action and not by hindsight.
1999, c. 772, § 26-45.9; 2012, c. 614.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-788. Delegation of investment and management functions

A. A trustee may delegate investment and management functions that a prudent trustee of comparable skills could properly delegate under the circumstances. The trustee shall exercise reasonable care, skill, and caution in:
1. Selecting an agent;
2. Establishing the scope and terms of the delegation, consistent with the purposes and terms of the trust; and
3. Periodically reviewing the agent's actions in order to monitor the agent's performance and compliance with the terms of the delegation.
B. In performing a delegated function, an agent owes a duty to the trust to exercise reasonable care to comply with the terms of the delegation.
C. A trustee who complies with the requirements of subsection A is not liable to the beneficiaries or to the trust for the decisions or actions of the agent to whom the function was delegated.
D. By accepting the delegation of a trust function from the trustee of a trust that is subject to the law of the Commonwealth, an agent submits to the jurisdiction of the courts of the Commonwealth.
1999, c. 772, § 26-45.10; 2012, c. 614.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-789. Language invoking standard of article

The following terms or comparable language in the provisions of a trust, unless otherwise limited or modified by language articulating the investment standard to which the trustee is to be held, authorizes any investment or strategy permitted under this article: "investments permissible by law for investment of trust funds," "legal investments," "authorized investments," "using the judgment and care under the circumstances then prevailing that persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not in regard to speculation but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of their capital," "prudent man rule," "prudent trustee rule," "prudent person rule," and "prudent investor rule."
1999, c. 772, § 26-45.11; 2012, c. 614.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-790. Application to existing trusts

This article applies to trusts existing on and created after January 1, 2000. As applied to trusts existing on its effective date, this article governs only decisions or actions occurring after that date.
1999, c. 772, § 26-45.12; 2012, c. 614.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-791. Uniformity of application and construction

This article shall be applied and construed to effectuate its general purpose to make uniform the law with respect to the subject of this article among the states enacting it.
1999, c. 772, § 26-45.14; 2012, c. 614.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-792. Remedies for breach of trust

A. A violation by a trustee of a duty the trustee owes to a beneficiary is a breach of trust.
B. To remedy a breach of trust that has occurred or may occur, the court may:
1. Compel the trustee to perform the trustee's duties;
2. Enjoin the trustee from committing a breach of trust;
3. Compel the trustee to redress a breach of trust by paying money, restoring property, or other means;
4. Order a trustee to account;
5. Appoint a special fiduciary to take possession of the trust property and administer the trust;
6. Suspend the trustee;
7. Remove the trustee as provided in § 64.2-759;
8. Reduce or deny compensation to the trustee;
9. Subject to § 64.2-803, void an act of the trustee, impose a lien or a constructive trust on trust property, or trace trust property wrongfully disposed of and recover the property or its proceeds; or
10. Order any other appropriate relief.
2005, c. 935, § 55-550.01; 2012, c. 614.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-793. Damages for breach of trust

A. A trustee who commits a breach of trust is liable to the beneficiaries affected for the greater of:
1. The amount required to restore the value of the trust property and trust distributions to what they would have been had the breach not occurred; or
2. The profit the trustee made by reason of the breach.
B. Except as otherwise provided in this subsection, if more than one trustee is liable to the beneficiaries for a breach of trust, a trustee is entitled to contribution from the other trustee or trustees. A trustee is not entitled to contribution if the trustee was substantially more at fault than another trustee or if the trustee committed the breach of trust in bad faith or with reckless indifference to the purposes of the trust or the interests of the beneficiaries. A trustee who received a benefit from the breach of trust is not entitled to contribution from another trustee to the extent of the benefit received.
2005, c. 935, § 55-550.02; 2012, c. 614.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-794. Damages in absence of breach

A. A trustee is accountable to an affected beneficiary for any profit made by the trustee arising from the administration of the trust, even absent a breach of trust.
B. Absent a breach of trust, a trustee is not liable to a beneficiary for a loss or depreciation in the value of trust property or for not having made a profit.
2005, c. 935, § 55-550.03; 2012, c. 614.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-795. Attorney fees and costs

In a judicial proceeding involving the administration of a trust, the court, as justice and equity may require, may award costs and expenses, including reasonable attorney fees, to any party, to be paid by another party or from the trust that is the subject of the controversy.
2005, c. 935, § 55-550.04; 2012, c. 614.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-796. Limitation of action against trustee

A. A beneficiary may not commence a proceeding against a trustee for breach of trust more than one year after the date the beneficiary or a representative of the beneficiary was sent a report that adequately disclosed the existence of a potential claim for breach of trust and informed the beneficiary of the time allowed for commencing a proceeding.
B. A report adequately discloses the existence of a potential claim for breach of trust if it provides sufficient information so that the beneficiary or representative knows of the potential claim or should have inquired into its existence.
C. If subsection A does not apply, a judicial proceeding by a beneficiary against a trustee for breach of trust shall be commenced within five years after the first to occur of:
1. The removal, resignation, or death of the trustee;
2. The termination of the beneficiary's interest in the trust; or
3. The termination of the trust.
D. Whenever fraud has been perpetrated in connection with any proceeding or in any statement filed under this chapter, or if fraud is used to avoid or circumvent the provisions or purposes of this chapter, any person injured thereby may obtain appropriate relief against the perpetrator of the fraud or restitution from any person benefiting from the fraud, whether innocent or not, except for a bona fide purchaser. Any proceeding shall be commenced within two years after the fraud is discovered, but no proceeding may be brought against one not a perpetrator of the fraud later than five years after the time the fraud is committed. This section does not apply to remedies for fraud practiced on a decedent during his lifetime that affects the succession of his estate.
E. The provisions of this section shall not operate to reduce the period of limitations applicable to actions and suits governed by § 8.01-245.
2005, c. 935, § 55-550.05; 2012, c. 614.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-797. Reliance on trust instrument

A trustee who acts in reasonable reliance on the terms of the trust as expressed in the trust instrument is not liable to a beneficiary for a breach of trust to the extent the breach resulted from the reliance.
2005, c. 935, § 55-550.06; 2012, c. 614.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-798. Event affecting administration or distribution

If the happening of an event, including marriage, divorce, performance of educational requirements, or death, affects the administration or distribution of a trust, a trustee who has exercised reasonable care to ascertain the happening of the event is not liable for a loss resulting from the trustee's lack of knowledge.
2005, c. 935, § 55-550.07; 2012, c. 614.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-799. Exculpation of trustee

A. A term of a trust relieving a trustee of liability for breach of trust is unenforceable to the extent that it:
1. Relieves the trustee of liability for breach of trust committed in bad faith or with reckless indifference to the purposes of the trust or the interests of the beneficiaries; or
2. Was inserted as the result of an abuse by the trustee of a fiduciary or confidential relationship to the settlor.
B. An exculpatory term drafted or caused to be drafted by the trustee is invalid as an abuse of a fiduciary or confidential relationship unless the trustee proves that the existence and contents of the exculpatory term were adequately communicated to the settlor.
2005, c. 935, § 55-550.08; 2012, c. 614.
2023 Code of Virginia › Title 64.2 - Wills, Trusts, and Fiduciaries › Chapter 7 - Uniform Trust Code › § 64.2-800. Beneficiary's consent, release, or ratification

A trustee is not liable to a beneficiary for breach of trust if the beneficiary consented to the conduct constituting the breach, released the trustee from liability for the breach, or ratified the transaction constituting the breach, unless:
1. The consent, release, or ratification of the beneficiary was induced by improper conduct of the trustee; or
2. At the time of the consent, release, or ratification, the beneficiary did not know of the beneficiary's rights or of the material facts relating to the breach.
2005, c. 935, § 55-550.09; 2012, c. 614.