Virginia Code 64.2-1073: When right to income begins and ends.
A. An income beneficiary is entitled to net income in accordance with the terms of the trust from the date an income interest begins. The income interest begins on the date specified in the terms of the trust or, if no date is specified, on the date an asset becomes subject to:
Terms Used In Virginia Code 64.2-1073
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Beneficiary: includes :
1. See Virginia Code 64.2-1033
- Decedent: A deceased person.
- Estate: includes the property of the decedent as the estate is originally constituted and the property of the estate as it exists at any time during administration. See Virginia Code 64.2-1033
- 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 (§ Virginia Code 64.2-1033
- Successive interest: means the interest of a successor beneficiary. See Virginia Code 64.2-1033
- Successor beneficiary: means a person entitled to receive income or principal or to use property when an income interest or other current interest ends. See Virginia Code 64.2-1033
- Trust: includes all trusts described in § Virginia Code 64.2-1033
1. The trust for the current income beneficiary; or
2. A successive interest for a successor beneficiary.
B. An asset becomes subject to a trust under subdivision A 1:
1. For an asset that is transferred to the trust during the settlor’s life, on the date the asset is transferred;
2. For an asset that becomes subject to the trust because of a decedent‘s death, on the date of the decedent’s death, even if there is an intervening period of administration of the decedent’s estate; or
3. For an asset that is transferred to a fiduciary by a third party because of a decedent’s death, on the date of the decedent’s death.
C. An asset becomes subject to a successive interest under subdivision A 2 on the day after the preceding income interest ends, as determined under subsection D, even if there is an intervening period of administration to wind up the preceding income interest.
D. An income interest ends on the day before an income beneficiary dies or another terminating event occurs or on the last day of a period during which there is no beneficiary to which a fiduciary may or must distribute income.
2022, c. 354.