Terms Used In Virginia Code 64.2-1050

• Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
• Fiduciary: A trustee, executor, or administrator.
• Fiduciary: includes a trustee, trust director under the Uniform Directed Trust Act (§ Virginia Code 64.2-1033
• Income: includes a part of receipts from a sale, exchange, or liquidation of a principal asset, to the extent provided in Articles 4 (§ 64.2-1048.

  B. A fiduciary may account separately under this section for the transactions of a business or other activity, whether or not assets of the business or other activity are segregated from other assets held by the fiduciary.

  C. A fiduciary that accounts separately under this section for a business or other activity:

  1. May determine:

  a. The extent to which the net cash receipts of the business or other activity must be retained for:

  (1) Working capital;

  (2) The acquisition or replacement of fixed assets; and

  (3) Other reasonably foreseeable needs of the business or other activity; and

  b. The extent to which the remaining net cash receipts are accounted for as principal or income in the fiduciary’s general accounting records for the trust;

  2. May make a determination under subdivision 1 separately and differently from the fiduciary’s decisions concerning distributions of income or principal; and

  3. Shall account for the net amount received from the sale of an asset of the business or other activity, other than a sale in the ordinary course of the business or other activity, as principal in the fiduciary’s general accounting records for the trust, to the extent the fiduciary determines that the net amount received is no longer required in the conduct of the business or other activity.

  D. Activities for which a fiduciary may account separately under this section include:

  1. Retail, manufacturing, service, and other traditional business activities;

  2. Farming;

  3. Raising and selling livestock and other animals;

  4. Managing rental properties;

  5. Extracting minerals, water, and other natural resources;

  6. Growing and cutting timber;

  7. An activity to which § 64.2-1061, 64.2-1062, or 64.2-1063 applies; and

  8. Any other business conducted by the fiduciary.

  2022, c. 354.