Virginia § 64.2-1055 - Insubstantial allocation not required
Full text of Virginia Code of Virginia § 64.2-1055 — Insubstantial allocation not required, with citation guidance and answers to common questions.
§ 64.2-1055. Insubstantial allocation not required
A. If a fiduciary determines that an allocation between income and principal required by § 64.2-1056, 64.2-1057, 64.2-1058, 64.2-1059, or 64.2-1062 is insubstantial, the fiduciary may allocate the entire amount to principal, unless subsection E of § 64.2-1038 applies to the allocation.
B. A fiduciary may presume an allocation is insubstantial under subsection A if:
1. The amount of the allocation would increase or decrease net income in an accounting period, as determined before the allocation, by less than 10 percent; and
2. The asset producing the receipt to be allocated has a fair market value less than 10 percent of the total fair market value of the assets owned or held by the fiduciary at the beginning of the accounting period.
C. The power to make a determination under subsection A may be:
1. Exercised by a co-fiduciary in the manner described in subsection F of § 64.2-1038; or
2. Released or delegated for a reason described in subsection G of § 64.2-1038 and in the manner described in subsection H of § 64.2-1038.
2022, c. 354.
Frequently Asked Questions About Virginia § 64.2-1055
What does Code of Virginia § 64.2-1055 cover?
Section 64.2-1055 ("Insubstantial allocation not required") is part of the Code of Virginia, the codified statutory law of Virginia. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Virginia § 64.2-1055?
A common citation format is "Code of Virginia § 64.2-1055" (Virginia). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Virginia law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Virginia official source linked on this page or consult a licensed Virginia attorney.
How does Virginia § 64.2-1055 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Virginia can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Virginia.