2006 Code of Virginia § 55-544.19 - Distribution of income of trust which is a private foundation or a charitable trust; prohibitions a...

55-544.19. Distribution of income of trust which is a private foundation ora charitable trust; prohibitions as to such private foundation.

Every trust which is a private foundation (as defined in 509 of theInternal Revenue Code) or a charitable trust (as described in 4947 (a) (1)of the Internal Revenue Code), unless its governing instrument expresslyincludes specific provisions to the contrary, shall distribute its income,and if necessary principal, for each taxable year at such time and in suchmanner as not to subject such trust to tax under 4942 of the InternalRevenue Code, and such trust shall not engage in any act of self-dealing (asdefined in 4941 (d) of the Internal Revenue Code), retain any excessbusiness holdings (as defined in 4943 (c) of the Internal Revenue Code),make any investments in such manner as to give rise to liability for the taximposed by 4944 of the Internal Revenue Code, or make any taxableexpenditures (as defined in 4945 (d) of the Internal Revenue Code).

(2005, c. 935.)