2006 Code of Virginia § 55-17.1 - Trusts not to fail because no beneficiaries are specified by name and no duties laid on trustee; wh...

55-17.1. Trusts not to fail because no beneficiaries are specified by nameand no duties laid on trustee; when interest of beneficiaries deemed personalproperty; liens.

No trust relating to real estate shall fail nor shall any use relating toreal estate be defeated because no beneficiaries are specified by name in therecorded deed of conveyance to the trustee or because no duties are imposedupon the trustee. The power conferred by any such instrument on a trustee tosell, lease, encumber or otherwise dispose of property therein describedshall be effective and no person dealing with such a trustee shall berequired to make further inquiry as to the right of such trustee to act norshall he be required to inquire as to the disposition of any proceeds.

In any case under this section, where there is a recorded deed of conveyanceto a trustee, the interest of the beneficiaries thereunder shall be deemed tobe personal property. Judgments against a beneficiary and consensual liensagainst real property of a beneficiary do not attach to real property that isthe subject of such a deed of conveyance unless the judgment is docketed orthe lien recorded in the city or county where the property is located (i)before recordation of the deed creating the land trust and (ii) while thebeneficiary has record title to the real property.

Nothing in this section shall be construed to (i) affect any right which acreditor may otherwise have against a trustee or beneficiary except asprovided above, (ii) enlarge upon the power of a corporation to act astrustee under 6.1-5 or (iii) affect the rule against perpetuities.

(1962, c. 452; 1975, c. 375; 1993, c. 454.)