Virginia Code 6.2-1080: Limitation on powers.
A. In the exercise of any power held by a private trust company in its capacity as a fiduciary, the private trust company shall have a duty not to exercise any power in such a way as to deprive the estate, trust, or other entity for which it acts as a fiduciary of an otherwise available tax exemption, deduction, or credit for tax purposes or deprive a donor of trust assets of a tax exemption, deduction, or credit or operate to impose a tax upon a donor or other person as owner of any portion of the estate, trust, or otherwise.
Terms Used In Virginia Code 6.2-1080
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Donor: The person who makes a gift.
- Entity: means any corporation, partnership, association, cooperative, limited liability company, trust, joint venture, government, political subdivision, or other legal or commercial entity. See Virginia Code 6.2-100
- Family: means a designated relative and family members of that designated relative. See Virginia Code 6.2-1074
- Family member: means the designated relative and:
1. See Virginia Code 6.2-1074
- Fiduciary: A trustee, executor, or administrator.
- Fiduciary: means executor, administrator, conservator, guardian, committee, or trustee. See Virginia Code 6.2-1074
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Person: means any individual, corporation, partnership, association, cooperative, limited liability company, trust, joint venture, government, political subdivision, or other legal or commercial entity. See Virginia Code 6.2-100
- Private trust company: means a corporation or limited liability company that is organized to engage in private trust business under this article with one or more family members and that does not transact business with the general public. See Virginia Code 6.2-1074
- Tax: includes , but is not limited to, federal, state or local income, gift, estate, generation-skipping transfer, or inheritance tax. See Virginia Code 6.2-1074
- Trust company: means a corporation, including an affiliated trust company, that is authorized to engage in the trust business under Article 2 (§ Virginia Code 6.2-1000
B. Without limitation to subsection A, no family member who is a stockholder or member or who otherwise holds an equity interest in, or is serving as a director, officer, manager, or employee of, a private trust company shall participate in or otherwise have a voice in any discretionary decision by the private trust company to distribute income or principal of any trust in order to discharge a legal obligation of the family member or for the family member’s pecuniary benefit, unless:
1. The exercise of the discretion is limited by an ascertainable standard relating to the health, education, support, or maintenance of that family member;
2. The distribution is necessary for that family member’s support, health, or education; or
3. The instrument governing the administration of that trust clearly so provides.