55-277.3 - Fiduciary duties; general principles.
§ 55-277.3. Fiduciary duties; general principles.
A. In allocating receipts and disbursements to or between principal andincome, and with respect to any matter within the scope of Articles 2 (§55-277.5 et seq.) and 3 (§ 55-277.7 et seq.), a fiduciary:
1. Shall administer a trust or estate in accordance with the terms of thetrust or the will, even if there is a different provision in this chapter;
2. May administer a trust or estate by the exercise of a discretionary powerof administration given to the fiduciary by the terms of the trust or thewill, even if the exercise of the power produces a result different from aresult required or permitted by this chapter;
3. Shall administer a trust or estate in accordance with this chapter if theterms of the trust or the will do not contain a different provision or do notgive the fiduciary a discretionary power of administration; and
4. Shall add a receipt or charge a disbursement to principal to the extentthat the terms of the trust and this chapter do not provide a rule forallocating the receipt or disbursement to or between principal and income.
B. In exercising the power to adjust under subsection A of § 55-277.4 or adiscretionary power of administration regarding a matter within the scope ofthis chapter, whether granted by the terms of a trust, a will, or thischapter, a fiduciary shall administer a trust or estate impartially, based onwhat is fair and reasonable to all of the beneficiaries, except to the extentthat the terms of the trust or the will clearly manifest an intention thatthe fiduciary shall or may favor one or more of the beneficiaries. Adetermination in accordance with this chapter is presumed to be fair andreasonable to all of the beneficiaries.
C. The power of a fiduciary to allocate receipts and expenses between incomeand principal, whether incorporated by reference, expressly conferred by theterms of a will or trust, or granted by a court pursuant to § 64.1-57.1, doesnot alone constitute a discretionary power of administration for purposes ofthis section.
(1999, c. 975.)