55-277.13 - Principal receipts. - Virginia Statutes

§ 55-277.13. Principal receipts.

A trustee shall allocate to principal:

1. To the extent not allocated to income under this chapter, assets receivedfrom a transferor during the transferor's lifetime, a decedent's estate, atrust with a terminating income interest, or a payer under a contract namingthe trust or its trustee as beneficiary;

2. Money or other property received from the sale, exchange, liquidation, orchange in form of a principal asset, including realized profit, subject tothis article;

3. Amounts recovered from third parties to reimburse the trust because ofdisbursements described in subdivision A 7 of § 55-277.26 or for otherreasons to the extent not based on the loss of income;

4. Proceeds of property taken by eminent domain, but a separate award madefor the loss of income with respect to an accounting period during which acurrent income beneficiary had a mandatory income interest is income;

5. Net income received in an accounting period during which there is nobeneficiary to whom a trustee may or must distribute income; and

6. Other receipts as provided in §§ 55-277.17 through 55-277.24.

(1999, c. 975.)