A. In this section, “liquidating asset” means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a period of limited duration. The term includes a leasehold, patent, copyright, or royalty right, and a right to receive payments during a period of more than one year under an arrangement that does not provide for the payment of interest on the unpaid balance. The term does not include a payment subject to § 64.2-1017, resources subject to § 64.2-1019, timber subject to § 64.2-1020, an activity subject to § 64.2-1022, an asset subject to § 64.2-1023, or any asset for which the trustee establishes a reserve for depreciation under § 64.2-1026.

B. A trustee shall allocate to income 10 percent of the receipts from a liquidating asset and the balance to principal.

History

1999, c. 975, § 55-277.19; 2012, c. 614.