55-548.17 - Distribution upon termination. - Virginia Statutes

§ 55-548.17. Distribution upon termination.

A. Upon termination or partial termination of a trust, the trustee may sendto the beneficiaries a proposal for distribution. The right of anybeneficiary to object to the proposed distribution terminates if thebeneficiary does not notify the trustee of an objection within 30 days afterthe proposal was sent but only if the proposal informed the beneficiary ofthe right to object and of the time allowed for objection.

B. Upon the occurrence of an event terminating or partially terminating atrust, the trustee shall proceed expeditiously to distribute the trustproperty to the persons entitled to it, subject to the right of the trusteeto retain a reasonable reserve for the payment of debts, expenses, and taxes.

C. A release by a beneficiary of a trustee from liability for breach of trustis invalid to the extent:

1. It was induced by improper conduct of the trustee; or

2. The beneficiary, at the time of the release, did not know of thebeneficiary's rights or of the material facts relating to the breach.

(2005, c. 935.)