55-277.12 - Business and other activities conducted by trustee. - Virginia Statutes

§ 55-277.12. Business and other activities conducted by trustee.

A. If a trustee who conducts a business or other activity determines that itis in the best interest of all the beneficiaries to account separately forthe business or activity instead of accounting for it as part of the trust'sgeneral accounting records, the trustee may maintain separate accountingrecords for its transactions, whether or not its assets are segregated fromother trust assets.

B. A trustee who accounts separately for a business or other activity maydetermine the extent to which its net cash receipts must be retained forworking capital, the acquisition or replacement of fixed assets, and otherreasonably foreseeable needs of the business or activity, and the extent towhich the remaining net cash receipts are accounted for as principal orincome in the trust's general accounting records. If a trustee sells assetsof the business or other activity, other than in the ordinary course of thebusiness or activity, the trustee shall account for the net amount receivedas principal in the trust's general accounting records to the extent thetrustee determines that the amount received is no longer required in theconduct of the business.

C. Activities for which a trustee may maintain separate accounting recordsinclude:

1. Retail, manufacturing, service, and other traditional business activities;

2. Farming;

3. Raising and selling livestock and other animals;

4. Management of rental properties;

5. Extraction of minerals and other natural resources;

6. Timber operations; and

7. Activities to which § 55-277.23 applies.

(1999, c. 975.)