Virginia Code 64.2-1045: Applicable value.
A. A unitrust policy must provide the method for determining the fair market value of an asset for the purpose of determining the unitrust amount, including:
Terms Used In Virginia Code 64.2-1045
- Applicable value: means the amount of the net fair market value of a trust taken into account under § Virginia Code 64.2-1033
- Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
- Income: includes a part of receipts from a sale, exchange, or liquidation of a principal asset, to the extent provided in Articles 4 (§ Virginia Code 64.2-1039
1. The frequency of valuing the asset, which need not require a valuation in every period; and
2. The date for valuing the asset in each period in which the asset is valued.
B. Except as otherwise provided in subdivision B 2 of § 64.2-1047, a unitrust policy may provide methods for determining the amount of the net fair market value of the trust to take into account in determining the applicable value, including:
1. Obtaining an appraisal of an asset for which fair market value is not readily available;
2. Exclusion of specific assets or groups or types of assets;
3. Other exceptions or modifications of the treatment of specific assets or groups or types of assets;
4. Identification and treatment of cash or property held for distribution;
5. Use of:
a. An average of fair market values over a stated number of preceding periods; or
b. Another mathematical blend of fair market values over a stated number of preceding periods;
6. A limit on how much the applicable value of all assets, groups of assets, or individual assets may increase over:
a. The corresponding applicable value for the preceding period; or
b. A mathematical blend of applicable values over a stated number of preceding periods;
7. A limit on how much the applicable value of all assets, groups of assets, or individual assets may decrease below:
a. The corresponding applicable value for the preceding period; or
b. A mathematical blend of applicable values over a stated number of preceding periods;
8. The treatment of accrued income and other features of an asset that affect value; and
9. Determining the liabilities of the trust, including treatment of liabilities to conform with the treatment of assets under subdivisions 1 through 8.
2022, c. 354.