{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2026\/code-json\/64.2-1057.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2026\/code-text\/64.2-1057.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2026\/code-xml\/64.2-1057.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2026\/code-html\/64.2-1057.html"}],"law_id":375799,"edition_id":2,"section_id":375799,"structure_id":53445,"section_number":"64.2-1057","catch_line":"Liquidating asset","history":"2022, c. 354.","full_text":"A\n\nAs used in this section, &#8220;liquidating asset&#8221; means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a limited time. &#8220;Liquidating asset&#8221; includes a leasehold, patent, copyright, royalty right, and 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.\n\nB\n\nThis section does not apply to a receipt subject to &#xA7; 64.2-1048, 64.2-1056, 64.2-1058, 64.2-1059, 64.2-1061, 64.2-1062, 64.2-1063, or 64.2-1066.\n\nC\n\nA fiduciary shall allocate:\n\n1\n\nTo income:\n\t\t\t\ta. A receipt produced by a liquidating asset, to the extent the receipt does not exceed four percent of the value of the asset; or\n\n\t\t\t\tb. If the fiduciary cannot determine the value of the asset, 10 percent of the receipt; and\n\n2\n\nTo principal, the balance of the receipt.\n\n","order_by":null,"text":{"0":{"id":1403023,"text":"As used in this section, &#8220;liquidating asset&#8221; means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a limited time. &#8220;Liquidating asset&#8221; includes a leasehold, patent, copyright, royalty right, and 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.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":1403024,"text":"This section does not apply to a receipt subject to &#xA7; 64.2-1048, 64.2-1056, 64.2-1058, 64.2-1059, 64.2-1061, 64.2-1062, 64.2-1063, or 64.2-1066.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":1403025,"text":"A fiduciary shall allocate:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"C1"},"3":{"id":1403026,"text":"To income:\n\t\t\t\ta. A receipt produced by a liquidating asset, to the extent the receipt does not exceed four percent of the value of the asset; or\t\t\t\tb. If the fiduciary cannot determine the value of the asset, 10 percent of the receipt; and","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"4":{"id":1403027,"text":"To principal, the balance of the receipt.","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1"}},"ancestry":[{"id":53445,"edition_id":2,"name":"Allocation of Receipts: Receipts Normally Apportioned","identifier":"6","label":"article","depth":4,"order_by":6,"parent_id":53439,"metadata":{"child_laws":9,"child_structures":0},"date_created":"2026-08-02 03:16:31","date_modified":"2026-08-02 12:37:17","permalink":{"id":1500979,"object_type":"structure","relational_id":53445,"identifier":"6","token":"64.2\/III\/10.1\/6","url":"\/64.2\/III\/10.1\/6\/","edition_id":2,"permalink":0,"preferred":1}},{"id":53439,"edition_id":2,"name":"Uniform Fiduciary Income And Principal Act","identifier":"10.1","label":"chapter","depth":3,"order_by":4,"parent_id":53428,"metadata":{"child_laws":46,"child_structures":10},"date_created":"2026-08-02 03:16:28","date_modified":"2026-08-02 12:37:16","permalink":{"id":1500865,"object_type":"structure","relational_id":53439,"identifier":"10.1","token":"64.2\/III\/10.1","url":"\/64.2\/III\/10.1\/","edition_id":2,"permalink":0,"preferred":1}},{"id":53428,"edition_id":2,"name":"Trusts","identifier":"III","label":"subtitle","depth":2,"order_by":3,"parent_id":53424,"metadata":{"child_laws":232,"child_structures":36},"date_created":"2026-08-02 03:16:27","date_modified":"2026-08-02 12:37:10","permalink":{"id":1500813,"object_type":"structure","relational_id":53428,"identifier":"III","token":"64.2\/III","url":"\/64.2\/III\/","edition_id":2,"permalink":0,"preferred":1}},{"id":53424,"edition_id":2,"name":"Wills, Trusts, and Fiduciaries","identifier":"64.2","label":"title","depth":1,"order_by":136,"parent_id":null,"metadata":{"child_laws":776,"child_structures":114},"date_created":"2026-08-02 03:16:27","date_modified":"2026-08-02 12:37:05","permalink":{"id":1499783,"object_type":"structure","relational_id":53424,"identifier":"64.2","token":"64.2","url":"\/64.2\/","edition_id":2,"permalink":0,"preferred":1}}],"structure_contents":[{"id":375797,"structure_id":53445,"section_number":"64.2-1055","catch_line":"Insubstantial allocation not required","url":"\/64.2-1055\/","token":"64.2\/III\/10.1\/6\/64.2-1055","metadata":false},{"id":375798,"structure_id":53445,"section_number":"64.2-1056","catch_line":"Deferred compensation, annuity, or similar payment","url":"\/64.2-1056\/","token":"64.2\/III\/10.1\/6\/64.2-1056","metadata":false},{"id":375799,"structure_id":53445,"section_number":"64.2-1057","catch_line":"Liquidating asset","url":"\/64.2-1057\/","token":"64.2\/III\/10.1\/6\/64.2-1057","metadata":false},{"id":375800,"structure_id":53445,"section_number":"64.2-1058","catch_line":"Minerals, water, and other natural resources","url":"\/64.2-1058\/","token":"64.2\/III\/10.1\/6\/64.2-1058","metadata":false},{"id":375801,"structure_id":53445,"section_number":"64.2-1059","catch_line":"Timber","url":"\/64.2-1059\/","token":"64.2\/III\/10.1\/6\/64.2-1059","metadata":false},{"id":375803,"structure_id":53445,"section_number":"64.2-1060","catch_line":"Marital deduction property not productive of income","url":"\/64.2-1060\/","token":"64.2\/III\/10.1\/6\/64.2-1060","metadata":false},{"id":375804,"structure_id":53445,"section_number":"64.2-1061","catch_line":"Derivative or option","url":"\/64.2-1061\/","token":"64.2\/III\/10.1\/6\/64.2-1061","metadata":false},{"id":375805,"structure_id":53445,"section_number":"64.2-1062","catch_line":"Asset-backed security","url":"\/64.2-1062\/","token":"64.2\/III\/10.1\/6\/64.2-1062","metadata":false},{"id":375806,"structure_id":53445,"section_number":"64.2-1063","catch_line":"Other financial instrument or arrangement","url":"\/64.2-1063\/","token":"64.2\/III\/10.1\/6\/64.2-1063","metadata":false}],"previous_section":{"id":375798,"structure_id":53445,"section_number":"64.2-1056","catch_line":"Deferred compensation, annuity, or similar payment","url":"\/64.2-1056\/","token":"64.2\/III\/10.1\/6\/64.2-1056","metadata":false},"next_section":{"id":375800,"structure_id":53445,"section_number":"64.2-1058","catch_line":"Minerals, water, and other natural resources","url":"\/64.2-1058\/","token":"64.2\/III\/10.1\/6\/64.2-1058","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/64.2-1057\/","history_text":"<p>This law was first created in 2022. The record of its establishment is cataloged in chapter <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?221+ful+CHAP0354\">354<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":[{"id":375789,"section_number":"64.2-1048","catch_line":"Character of receipts from entity","order_by":null,"url":"\/64.2-1048\/"},{"id":375795,"section_number":"64.2-1053","catch_line":"Receipt on obligation to be paid in money","order_by":null,"url":"\/64.2-1053\/"},{"id":375797,"section_number":"64.2-1055","catch_line":"Insubstantial allocation not required","order_by":null,"url":"\/64.2-1055\/"},{"id":375809,"section_number":"64.2-1066","catch_line":"Transfer from income to principal for depreciation","order_by":null,"url":"\/64.2-1066\/"}],"refers_to":[{"id":375789,"section_number":"64.2-1048","catch_line":"Character of receipts from entity","order_by":null,"url":"\/64.2-1048\/"},{"id":375798,"section_number":"64.2-1056","catch_line":"Deferred compensation, annuity, or similar payment","order_by":null,"url":"\/64.2-1056\/"},{"id":375800,"section_number":"64.2-1058","catch_line":"Minerals, water, and other natural resources","order_by":null,"url":"\/64.2-1058\/"},{"id":375801,"section_number":"64.2-1059","catch_line":"Timber","order_by":null,"url":"\/64.2-1059\/"},{"id":375804,"section_number":"64.2-1061","catch_line":"Derivative or option","order_by":null,"url":"\/64.2-1061\/"},{"id":375805,"section_number":"64.2-1062","catch_line":"Asset-backed security","order_by":null,"url":"\/64.2-1062\/"},{"id":375806,"section_number":"64.2-1063","catch_line":"Other financial instrument or arrangement","order_by":null,"url":"\/64.2-1063\/"},{"id":375809,"section_number":"64.2-1066","catch_line":"Transfer from income to principal for depreciation","order_by":null,"url":"\/64.2-1066\/"}],"permalink":{"id":1500989,"object_type":"law","relational_id":375799,"identifier":"64.2-1057","token":"64.2\/III\/10.1\/6\/64.2-1057","url":"\/64.2-1057\/","edition_id":2,"permalink":0,"preferred":1},"url":"\/64.2-1057\/","token":"64.2\/III\/10.1\/6\/64.2-1057","dublin_core":{"Title":"Liquidating asset","Type":"Text","Format":"text\/html","Identifier":"\u00a7 64.2-1057","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t<section id=\"A\"><p><span class=\"prefix-number\">A.<\/span> As used in this section, &#8220;<span class=\"dictionary\">liquidating asset<\/span>&#8221; means an asset whose <span class=\"dictionary\">value<\/span> <span class=\"dictionary\">will<\/span> diminish or terminate because the asset is expected to produce receipts for a limited time. &#8220;<span class=\"dictionary\">Liquidating asset<\/span>&#8221; includes a leasehold, patent, copyright, royalty right, and 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. <a id=\"paragraph-1403023\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/64.2-1057\/#A\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"B\"><p><span class=\"prefix-number\">B.<\/span> This section does not apply to a receipt subject to &#xA7; <a class=\"law\" title=\"Character of receipts from entity\" href=\"\/64.2-1048\/\">64.2-1048<\/a>, <a class=\"law\" title=\"Deferred compensation, annuity, or similar payment\" href=\"\/64.2-1056\/\">64.2-1056<\/a>, <a class=\"law\" title=\"Minerals, water, and other natural resources\" href=\"\/64.2-1058\/\">64.2-1058<\/a>, <a class=\"law\" title=\"Timber\" href=\"\/64.2-1059\/\">64.2-1059<\/a>, <a class=\"law\" title=\"Derivative or option\" href=\"\/64.2-1061\/\">64.2-1061<\/a>, <a class=\"law\" title=\"Asset-backed security\" href=\"\/64.2-1062\/\">64.2-1062<\/a>, <a class=\"law\" title=\"Other financial instrument or arrangement\" href=\"\/64.2-1063\/\">64.2-1063<\/a>, or <a class=\"law\" title=\"Transfer from income to principal for depreciation\" href=\"\/64.2-1066\/\">64.2-1066<\/a>. <a id=\"paragraph-1403024\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/64.2-1057\/#B\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"C\"><p><span class=\"prefix-number\">C.<\/span> A <span class=\"dictionary\">fiduciary<\/span> shall allocate: <a id=\"paragraph-1403025\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/64.2-1057\/#C\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"C1\" class=\"indent-1\"><p><span class=\"prefix-number\">1.<\/span> To <span class=\"dictionary\">income<\/span>:\n\t\t\t\ta. A receipt produced by a <span class=\"dictionary\">liquidating asset<\/span>, to the extent the receipt does not exceed four percent of the <span class=\"dictionary\">value<\/span> of the asset; or<br \/><br \/>\t\t\t\tb. If the <span class=\"dictionary\">fiduciary<\/span> cannot determine the <span class=\"dictionary\">value<\/span> of the asset, 10 percent of the receipt; and <a id=\"paragraph-1403026\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/64.2-1057\/#C1\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"C2\" class=\"indent-1\"><p><span class=\"prefix-number\">2.<\/span> To <span class=\"dictionary\">principal<\/span>, the balance of the receipt. <a id=\"paragraph-1403027\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/64.2-1057\/#C2\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>","plain_text":"                                 CODE OF VIRGINIA\n\nLIQUIDATING ASSET (\u00a7 64.2-1057)\n\nA. As used in this section, &#8220;liquidating asset&#8221; means an asset whose\nvalue will diminish or terminate because the asset is expected to produce\nreceipts for a limited time. &#8220;Liquidating asset&#8221; includes a\nleasehold, patent, copyright, royalty right, and right to receive payments\nduring a period of more than one year under an arrangement that does not provide\nfor the payment of interest on the unpaid balance.\n\nB. This section does not apply to a receipt subject to &#xA7; 64.2-1048,\n64.2-1056, 64.2-1058, 64.2-1059, 64.2-1061, 64.2-1062, 64.2-1063, or 64.2-1066.\n\nC. A fiduciary shall allocate:\n\n   1. To income:\n   \t\t\t\ta. A receipt produced by a liquidating asset, to the extent the receipt\n   does not exceed four percent of the value of the asset; or\t\t\t\tb. If the\n   fiduciary cannot determine the value of the asset, 10 percent of the receipt;\n   and\n\n   2. To principal, the balance of the receipt.\n\nHISTORY: 2022, c. 354.","edition":{"id":2,"name":"2026","slug":"2026","date_created":"2026-07-16 18:40:23","date_modified":"2026-08-02 15:14:36","current":1,"order_by":2,"last_import":"2026-08-02 12:37:30"}}