78865864.2-764Virginia Decodedhttps://vacode.org2016Wills, Trusts, And FiduciariesTrustsUniform Trust CodeDuties And Powers Of Trustee.Duty of loyalty2005, c. 935, § 55-548.02; 2012, c. 614.http://law.lis.virginia.gov/vacode/64.2-764/64.2-1506Investment in mutual fund affiliated with fiduciary/64.2-1506/64.2-775Duty to inform and report/64.2-775/64.2-780Definition of terms/64.2-780/64.2-803Protection of person dealing with trustee/64.2-803//64.2-764/64.2/III/7/8/64.2-764A trustee shall administer the trust solely in the interests of the beneficiaries.sectionAA1 The transaction was authorized by the terms of the trust;sectionB1B12 The transaction was approved by the court;sectionB2B22 The beneficiary did not commence a judicial proceeding within the time allowed by § 64.2-796;sectionB3B32 The transaction involves a contract entered into or claim acquired by the trustee before the person became or contemplated becoming trustee.sectionB5B52A sale, encumbrance, or other transaction involving the investment or management of trust property is presumed to be affected by a conflict between personal and fiduciary interests if it is entered into by the trustee with:sectionCC1 An agent or attorney of the trustee; orsectionC3C32A transaction between a trustee and a beneficiary that does not concern trust property but that occurs during the existence of the trust or while the trustee retains significant influence over the beneficiary and from which the trustee obtains an advantage beyond the normal commercial advantage from such transaction is voidable by the beneficiary unless the trustee establishes that the transaction was fair to the beneficiary.sectionDD1In voting shares of stock or in exercising powers of control over similar interests in other forms of enterprise, the trustee shall act in the best interests of the beneficiaries. If the trust is the sole owner of a corporation or other form of enterprise, the trustee shall elect or appoint directors or other managers who will manage the corporation or enterprise in the best interests of the beneficiaries.sectionGG1This section does not preclude the following transactions, if fair to the beneficiaries:sectionHH1 An agreement between a trustee and a beneficiary relating to the appointment or compensation of the trustee;sectionH1H12 Payment of reasonable compensation to the trustee;sectionH2H22 A deposit of trust money in a regulated financial service institution operated by the trustee; orsectionH4H42 An advance by the trustee of money for the protection of the trust.sectionH5H52The court may appoint a special fiduciary to make a decision with respect to any proposed transaction that might violate this section if entered into by the trustee.sectionII1