Virginia § 64.2-1047 - Special tax benefits; other rules

§ 64.2-1047. Special tax benefits; other rules

A. A unitrust policy may:

1. Provide methods and standards for:

a. Determining the timing of distributions;

b. Making distributions in cash or in kind or partly in cash and partly in kind; or

c. Correcting an underpayment or overpayment to a beneficiary based on the unitrust amount if there is an error in calculating the unitrust amount;

2. Specify sources and the order of sources, including categories of income for federal income tax purposes, from which distributions of a unitrust amount are paid; or

3. Provide other standards and rules the fiduciary determines serve the interests of the beneficiaries.

B. If a trust qualifies for a special tax benefit or a fiduciary is not an independent person:

1. The unitrust rate established under § 64.2-1044 may not be less than three percent or more than five percent;

2. The only provisions of § 64.2-1045 that apply are subsection A and subdivisions B 1, B 4, B 5 a, and B 9 of § 64.2-1045;

3. The only period that may be used under § 64.2-1046 is a calendar year under subdivision A 1 of § 64.2-1046; and

4. The only other provisions of § 64.2-1046 that apply are subdivisions B 2 a and B 3 of § 64.2-1046.

2022, c. 354.