CODE OF VIRGINIA

PRINCIPAL RECEIPTS (§ 64.2-1012)

A trustee shall allocate to principal:

   1.  To the extent not allocated to income under this chapter, assets received
   from a transferor during the transferor’s lifetime, a decedent’s
   estate, a trust with a terminating income interest, or a payer under a
   contract naming the trust or its trustee as beneficiary;

   2.  Money or other property received from the sale, exchange, liquidation, or
   change in form of a principal asset, including realized profit, subject to
   this article;

   3.  Amounts recovered from third parties to reimburse the trust because of
   disbursements described in subdivision A 7 of § 64.2-1025 or for other
   reasons to the extent not based on the loss of income;

   4.  Proceeds of property taken by eminent domain, but a separate award made
   for the loss of income with respect to an accounting period during which a
   current income beneficiary had a mandatory income interest is income;

   5.  Net income received in an accounting period during which there is no
   beneficiary to whom a trustee may or shall distribute income; and

   6.  Other receipts as provided in §§ 64.2-1016 through 64.2-1023.

HISTORY: 1999, c. 975, § 55-277.13; 2012, c. 614.