A. Except as otherwise provided in the contract, a trustee is not personally liable on a contract properly entered into in the trustee‘s fiduciary capacity in the course of administering the trust if the trustee in the contract disclosed the fiduciary capacity.

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Terms Used In Virginia Code 64.2-801

  • Contract: A legal written agreement that becomes binding when signed.
  • Environmental law: means a federal, state, or local law, rule, regulation, or ordinance relating to protection of the environment. See Virginia Code 64.2-701
  • Fiduciary: A trustee, executor, or administrator.
  • Fiduciary: includes a guardian, committee, trustee, executor, conservator, or personal representative. See Virginia Code 64.2-100
  • 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.
  • Property: means anything that may be the subject of ownership, whether real or personal, legal or equitable, or any interest therein. See Virginia Code 64.2-701
  • Tort: A civil wrong or breach of a duty to another person, as outlined by law. A very common tort is negligent operation of a motor vehicle that results in property damage and personal injury in an automobile accident.
  • Trustee: A person or institution holding and administering property in trust.
  • Trustee: includes an original, additional, and successor trustee and a cotrustee. See Virginia Code 64.2-701

B. A trustee is personally liable for torts committed in the course of administering a trust, or for obligations arising from ownership or control of trust property, including liability for violation of environmental law, only if the trustee is personally at fault.

C. A claim based on a contract entered into by a trustee in the trustee’s fiduciary capacity, on an obligation arising from ownership or control of trust property, or on a tort committed in the course of administering a trust, may be asserted in a judicial proceeding against the trustee in the trustee’s fiduciary capacity, whether or not the trustee is personally liable for the claim.

2005, c. 935, § 55-550.10; 2012, c. 614.