26-17.7 - Testamentary trustees under a will waiving accounts; waiver where beneficiary also trustee.
§ 26-17.7. Testamentary trustees under a will waiving accounts; waiver wherebeneficiary also trustee.
A. If (i) the will of a decedent probated on or after July 1, 1993, containsa waiver of the obligations of the testamentary trustee nominated therein toaccount, or (ii) if the sole beneficiary of the trust also is a trustee, thetrustee will not be required to file accounts with the commissioner ofaccounts. For purposes of this section, a "sole beneficiary" means a personwho is (a) the only income beneficiary who is entitled to the principal, orthe remaining principal goes to the trustee's estate or (b) the only incomebeneficiary and has either a general power of appointment over the principalor has a special power of appointment that is not limited to a particularclass of persons.
Where the waiver is contained in the decedent's will, the trustee shall (i)within 90 days after qualification, notify in writing all beneficiaries ofthe trust who are adults other than the trustee, whose addresses are known tothe trustee and to whom income or principal of the trust could be currentlydistributed; provide each with a copy of the applicable provisions of thewill; advise each of his right to require an annual accounting; and provideeach with a copy of this code section and (ii) annually thereafter provideeach such beneficiary an accounting upon request. The trustee shall send tothe commissioner of accounts a copy of the notice given to each beneficiaryor, in the alternative, file a writing with the commissioner stating that therequirements of this section have been met. For receiving and filing suchnotice or writing, the Commissioner shall be allowed a fee not to exceed $25.
B. Language substantially in form and effect as follows will be sufficient toconstitute a waiver in the will of the decedent of the trustee's obligationto account: I hereby direct that my trustee(s) shall not be required to fileannual accounts with a court as otherwise required by Virginia law.
C. Notwithstanding a waiver in the will of the decedent or any prior consentof a beneficiary, any such adult beneficiary may, at any time during theadministration of the trust, demand in a writing delivered to the trustee andto the commissioner of accounts that the trustee settle annually with thecommissioner of accounts. Upon notice of such demand to the trustee and thecommissioner of accounts, such trustee shall file an account with suchcommissioner for a period acceptable to the commissioner as though there wereno waiver by the testator. The beneficiary making such demand may laterrevoke his demand by a writing delivered to the trustee and the commissionerof accounts. The demand for settlement of the trustee's account before thecommissioner of accounts may also be made by the personal representative of adeceased beneficiary whose estate is a beneficiary, an attorney in fact for abeneficiary, a guardian of an incapacitated beneficiary, a committee of aconvict or insane beneficiary, the duly qualified guardian of a minor, or ifnone exists, a custodial parent of a minor or by any minor who has attained14 years of age.
D. Notwithstanding the provisions of this section, any trustee under a willof a decedent containing the requisite waiver, whenever probated, shall berelieved of the duty to file an inventory or annual accounts with thecommissioner of accounts if the trustee (i) obtains the written consent ofall adult beneficiaries, other than the trustee, to whom income or principalof the trust could be currently distributed, after providing thosebeneficiaries with the documents and information specified in subsection A;and (ii) files those consents with the commissioner on or before the date onwhich the inventory or next required accounting would otherwise be due. Forreceiving and filing such written consent, the Commissioner shall be alloweda fee not to exceed $25.
E. Notwithstanding the provisions of this section, any trustee under a willof a decedent probated on or after July 1, 2010, shall be relieved of theduty to file an inventory or annual accounts with the commissioner ofaccounts if the will of the decedent does not direct the filing of suchinventory or accounts and the trustee (i) obtains the written consent of alladult beneficiaries, other than the trustee, to whom income or principal ofthe trust could be currently distributed, after providing those beneficiarieswith the documents and information specified in subsection A; (ii) obtainsthe written consent of the representatives of all incapacitatedbeneficiaries, other than the trustee, to whom income or principal of thetrust could be currently distributed, after providing those representativeswith the documents and information specified in subsection A; and (iii) filesthose consents with the Commissioner on or before the date on which theinventory or next required accounting would otherwise be due. For receivingand filing such written consent, the Commissioner shall be allowed a fee notto exceed $25. The consent of an incapacitated beneficiary may be made by thepersonal representative of a deceased beneficiary whose estate is abeneficiary, an attorney in fact for a beneficiary, a guardian of anincapacitated beneficiary, a committee of a convict or insane beneficiary,the duly qualified guardian of a minor, or if none exists, a custodial parentof a minor who is not also the trustee. Language substantially in form andeffect as follows will be sufficient to constitute a direction in the will ofthe decedent of the trustee's obligation to account: I hereby direct that mytrustee(s) shall be required to file annual accounts with a court asotherwise required by Virginia law.
F. A court having jurisdiction may order the filing of annual accounts if itdeems such filings to be in the best interests of one or more beneficiariesof the trust.
(1993, c. 689; 2001, c. 73; 2005, c. 821; 2010, cc. 197, 651.)