2011 Code of Virginia
Title 55 PROPERTY AND CONVEYANCES.
Chapter 31 Uniform Trust Code (55-541.01 thru 55-551.06)
55-544.20 Prohibitions as to trust which is deemed a split-interest trust.

55-544.20. Prohibitions as to trust which is deemed a split-interest trust.

Every trust which is a split-interest trust (as described in 4947 (a) (2) of the Internal Revenue Code), unless its governing instrument expressly includes specific provisions to the contrary, shall not engage in any act of self-dealing (as defined in 4941 (d) of the Internal Revenue Code), retain any excess business holdings (as defined in 4943 (c) of the Internal Revenue Code) which would give rise to liability for the tax imposed by 4943 (a) of the Internal Revenue Code, make any investments in such manner as to give rise to liability for the tax imposed by 4944 of the Internal Revenue Code, or make any taxable expenditures (as defined in 4945 (d) of the Internal Revenue Code). This paragraph shall not apply with respect to:

1. Any amounts payable under the terms of such trust to income beneficiaries, unless a deduction was allowed under 170 (f) (2) (B), 2055 (e) (2) (B), or 2522 (c) (2) (B) of the Internal Revenue Code;

2. Any amounts in trust other than amounts for which a deduction was allowed under 170, 545 (b) (2), 556 (b) (2), 642 (c), 2055, 2106 (a) (2), or 2522 of the Internal Revenue Code, if such other amounts are segregated from amounts for which no deduction was allowable; or

3. Any amounts transferred in trust before May 27, 1969.

(2005, c. 935.)