Virginia Code 64.2-1051: Principal receipts
A fiduciary shall allocate to principal:
Terms Used In Virginia Code 64.2-1051
- Accounting period: includes a part of a calendar year or another period of 12 calendar months or approximately 12 calendar months that begins when an income interest begins or ends when an income interest ends. See Virginia Code 64.2-1033
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Beneficiary: includes :
1. See Virginia Code 64.2-1033
- Contract: A legal written agreement that becomes binding when signed.
- Estate: includes the property of the decedent as the estate is originally constituted and the property of the estate as it exists at any time during administration. See Virginia Code 64.2-1033
- Fiduciary: A trustee, executor, or administrator.
- Fiduciary: includes a trustee, trust director under the Uniform Directed Trust Act (§ 64. See Virginia Code 64.2-1033
- Income: includes a part of receipts from a sale, exchange, or liquidation of a principal asset, to the extent provided in Articles 4 (§ Virginia Code 64.2-1033
- Principal: means property held in trust for distribution to, production of income for, or use by a current or successor beneficiary. See Virginia Code 64.2-1033
- Trust: includes all trusts described in § 64. See Virginia Code 64.2-1033
1. To the extent not allocated under this chapter, an asset received from:
a. An individual during the individual’s lifetime;
b. An estate;
c. A trust on termination of an income interest; or
d. A payor under a contract naming the fiduciary as beneficiary;
2. Except as otherwise provided in this article, money or other property received from the sale, exchange, liquidation, or change in form of a principal asset;
3. An amount recovered from a third party to reimburse the fiduciary because of a disbursement described in subsection A of § 64.2-1065 or for another reason to the extent not based on loss of income;
4. Proceeds of property taken by eminent domain, except that proceeds awarded for loss of income in an accounting period are income if a current income beneficiary had a mandatory income interest during the period;
5. Net income received in an accounting period during which there is no beneficiary to which a fiduciary may or must distribute income; and
6. Other receipts as provided in Article 6 (§ 64.2-1055 et seq.).
2022, c. 354.