2006 Code of Virginia § 55-548.16 - Specific powers of trustee.

55-548.16. Specific powers of trustee.

A. Without limiting the authority conferred by 55-548.15, a trustee may:

1. Collect trust property and accept or reject additions to the trustproperty from a settlor or any other person;

2. Acquire or sell property, for cash or on credit, at public or private sale;

3. Exchange, partition, or otherwise change the character of trust property;

4. Deposit trust money in an account in a regulated financial-serviceinstitution;

5. Borrow money, with or without security, and mortgage or pledge trustproperty for a period within or extending beyond the duration of the trust;

6. With respect to an interest in a proprietorship, partnership, limitedliability company, business trust, corporation, or other form of business orenterprise, continue the business or other enterprise and take any actionthat may be taken by shareholders, members, or property owners, includingmerging, dissolving, or otherwise changing the form of business organizationor contributing additional capital;

7. With respect to stocks or other securities, exercise the rights of anabsolute owner, including the right to:

a. Vote, or give proxies to vote, with or without power of substitution, orenter into or continue a voting trust agreement;

b. Hold a security in the name of a nominee or in other form withoutdisclosure of the trust so that title may pass by delivery;

c. Pay calls, assessments, and other sums chargeable or accruing against thesecurities, and sell or exercise stock subscription or conversion rights; and

d. Deposit the securities with a depository or other regulated financialservice institution;

8. With respect to an interest in real property, construct, or make ordinaryor extraordinary repairs to, alterations to, or improvements in, buildings orother structures, demolish improvements, raze existing or erect new partywalls or buildings, subdivide or develop land, dedicate land to public use orgrant public or private easements, and make or vacate plats and adjustboundaries;

9. Enter into a lease for any purpose as lessor or lessee, including a leaseor other arrangement for exploration and removal of natural resources, withor without the option to purchase or renew, for a period within or extendingbeyond the duration of the trust;

10. Grant an option involving a sale, lease, or other disposition of trustproperty or acquire an option for the acquisition of property, including anoption exercisable beyond the duration of the trust, and exercise an optionso acquired;

11. Insure the property of the trust against damage or loss and insure thetrustee, the trustee's agents, and beneficiaries against liability arisingfrom the administration of the trust;

12. Abandon or decline to administer property of no value or of insufficientvalue to justify its collection or continued administration;

13. With respect to possible liability for violation of environmental law:

a. Inspect or investigate property the trustee holds or has been asked tohold, or property owned or operated by an organization in which the trusteeholds or has been asked to hold an interest, for the purpose of determiningthe application of environmental law with respect to the property;

b. Take action to prevent, abate, or otherwise remedy any actual or potentialviolation of any environmental law affecting property held directly orindirectly by the trustee, whether taken before or after the assertion of aclaim or the initiation of governmental enforcement;

c. Decline to accept property into trust or disclaim any power with respectto property that is or may be burdened with liability for violation ofenvironmental law;

d. Compromise claims against the trust that may be asserted for an allegedviolation of environmental law; and

e. Pay the expense of any inspection, review, abatement, or remedial actionto comply with environmental law;

14. Pay or contest any claim, settle a claim by or against the trust, andrelease, in whole or in part, a claim belonging to the trust;

15. Pay taxes, assessments, compensation of the trustee and of employees andagents of the trust, and other expenses incurred in the administration of thetrust;

16. Exercise elections with respect to federal, state, and local taxes;

17. Select a mode of payment under any employee benefit or retirement plan,annuity, or life insurance payable to the trustee, exercise rightsthereunder, including exercise of the right to indemnification for expensesand against liabilities, and take appropriate action to collect the proceeds;

18. Make loans out of trust property, including loans to a beneficiary onterms and conditions the trustee considers to be fair and reasonable underthe circumstances, and the trustee has a lien on future distributions forrepayment of those loans;

19. Pledge trust property to guarantee loans made by others to thebeneficiary;

20. Appoint a trustee to act in another jurisdiction with respect to trustproperty located in the other jurisdiction, confer upon the appointed trusteeall of the powers and duties of the appointing trustee, require that theappointed trustee furnish security, and remove any trustee so appointed;

21. Pay an amount distributable to a beneficiary who is under a legaldisability or who the trustee reasonably believes is incapacitated, by payingit directly to the beneficiary or applying it for the beneficiary's benefit,or by:

a. Paying it to the beneficiary's conservator or, if the beneficiary does nothave a conservator, the beneficiary's guardian;

b. Paying it to the beneficiary's custodian under the Uniform Transfers toMinors Act ( 31-37 et seq.) or custodial trustee under the Uniform CustodialTrust Act ( 55-34.1 et seq.), and, for that purpose, creating acustodianship or custodial trust;

c. If the trustee does not know of a conservator, guardian, custodian, orcustodial trustee, paying it to an adult relative or other person havinglegal or physical care or custody of the beneficiary, to be expended on thebeneficiary's behalf; or

d. Managing it as a separate fund on the beneficiary's behalf, subject to thebeneficiary's continuing right to withdraw the distribution;

22. On distribution of trust property or the division or termination of atrust, make distributions in divided or undivided interests, allocateparticular assets in proportionate or disproportionate shares, value thetrust property for those purposes, and adjust for resulting differences invaluation;

23. Resolve a dispute concerning the interpretation of the trust or itsadministration by mediation, arbitration, or other procedure for alternativedispute resolution;

24. Prosecute or defend an action, claim, or judicial proceeding in anyjurisdiction to protect trust property and the trustee in the performance ofthe trustee's duties;

25. Sign and deliver contracts and other instruments that are useful toachieve or facilitate the exercise of the trustee's powers; and

26. On termination of the trust, exercise the powers appropriate to wind upthe administration of the trust and distribute the trust property to thepersons entitled to it.

B. Any reference in a trust instrument incorporating the powers authorizedunder 64.1-57 shall not be construed to limit powers a trustee may exercisepursuant to this section, unless the settlor expressly states in the trustinstrument that such reference should be so construed.

(2005, c. 935.)