64.1-74 - Distribution of assets by fiduciaries in satisfaction of pecuniary bequests or transfers in trust of pecuniary amount.
§ 64.1-74. Distribution of assets by fiduciaries in satisfaction of pecuniarybequests or transfers in trust of pecuniary amount.
(a) Where a will or trust agreement authorizes or directs the fiduciary tosatisfy wholly or partly in kind a pecuniary bequest or transfer in trust ofa pecuniary amount, unless the instrument shall otherwise expressly provide,the assets selected by the fiduciary for that purpose shall be valued attheir respective values on the date or dates of their distribution.
(b) Whenever a fiduciary under the provisions of a will or other governinginstrument is required to satisfy a pecuniary bequest or transfer in trust infavor of the testator's or donor's spouse and is authorized to satisfy suchbequest or transfer by selection and distribution of assets in kind, and thewill or other governing instrument further provides that the assets to be sodistributed shall or may be valued by some standard other than their fairmarket value on the date of distribution, the fiduciary, unless the will orother governing instrument otherwise specifically directs, shall distributeassets, including cash, fairly representative of appreciation or depreciationin the value of all property available for distribution in satisfaction ofsuch pecuniary bequest or transfer. This section shall not apply to prevent afiduciary from carrying into effect the provisions of the will or othergoverning instrument that the fiduciary, in order to implement such a bequestor transfer, must distribute assets, including cash, having an aggregate fairmarket value at the date or dates of distribution amounting to no less thanthe amount of the pecuniary bequest or transfer as finally determined forfederal estate tax purposes.
(c) Any fiduciary having discretionary powers under a will or other governinginstrument with respect to the selection of assets to be distributed insatisfaction of a pecuniary bequest or transfer in trust in favor of thetestator's or donor's spouse shall be authorized to enter into agreementswith the Commissioner of Internal Revenue of the United States of America andother taxing authorities requiring the fiduciary to exercise the fiduciary'sdiscretion so that cash and other properties distributed in satisfaction ofsuch bequest or transfer in trust will be fairly representative of theappreciation or depreciation in value of all property then available fordistribution in satisfaction of such bequest or transfer in trust, and anysuch agreement heretofore entered into after April 1, 1964, is herebyvalidated. Any such fiduciary shall be authorized to enter into any otheragreement not in conflict with the express terms of the will or othergoverning instrument that may be necessary or advisable in order to securefor federal estate tax purposes the appropriate marital deduction availableunder the internal revenue laws of the United States of America, and to doand perform all acts incident to such purpose.
(d) Where a will or trust agreement directs the fiduciary to satisfypecuniary or fractional bequests or transfers in trust of a pecuniary amountor fractional share in favor of the testator's or donor's spouse with amountsor assets having a value equal to the maximum marital deduction availableunder the internal revenue laws of the United States of America, the interestof such spouse shall vest immediately upon the testator's death in the caseof a will and the execution of the trust agreement in the case of a trust,regardless of when the exact amount of the bequest or transfer is finallydetermined.
(Code 1950, § 64-71.2; 1966, c. 441; 1968, c. 656; 1978, c. 481.)