55-277.22 - Property not productive of income. - Virginia Statutes

§ 55-277.22. Property not productive of income.

A. If a marital deduction is allowed for all or part of a trust whose assetsconsist substantially of property that does not provide the spouse withsufficient income from or use of the trust assets, and if the amounts thatthe trustee transfers from principal to income under § 55-277.4 anddistributes to the spouse from principal pursuant to the terms of the trustare insufficient to provide the spouse with the beneficial enjoyment requiredto obtain the marital deduction, the spouse may require the trustee to makeproperty productive of income, convert property within a reasonable time, orexercise the power conferred by subsection A of § 55-277.4. The trustee maydecide which action or combination of actions to take.

B. In cases not governed by subsection A, proceeds from the sale or otherdisposition of an asset are principal without regard to the amount of incomethe asset produces during any accounting period.

(1999, c. 975.)