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2009 SESSION
HB 2435 Uniform Principal and Income Act; trustee required to demand certain distributions if requested.
Introduced by: William R. Janis | all patrons ... notes | add to my profiles
SUMMARY AS PASSED HOUSE: (all summaries)
Uniform Principal and Income Act (UPIA). Revises the Act to address a 2006 IRS ruling regarding marital deductions to ensure that an IRA or other retirement arrangement that is payable to a marital deduction trust qualifies for the federal estate tax marital deduction. The trustee will be required to demand certain distributions if the surviving spouse so requests because the IRS requires that the surviving spouse be separately entitled to demand the fund’s income. The bill also clarifies how a trust that is required to pay income to a beneficiary keeps enough money to pay its taxes and distribute the balance of the income to the mandatory income beneficiary. The bill also allows for the creation of grantor-created unitrusts to be administered in the manner of a total return unitrust. Current law allows for the conversion of income trusts into total return unitrusts but does not allow unitrusts to be otherwise created. The bill also provides that a qualified beneficiary of a trust, other than the attorney general of the Commonwealth, may petition the circuit court to convert an income trust to a total return unitrust, convert a total return unitrust to an income trust, or change the percentage used to calculate the unitrust amount or the method used to determine the fair market value of the trust assets. Currently, only the trustee may file such a petition.
FULL TEXT
- 01/14/09 House: Prefiled and ordered printed; offered 01/14/09 091510568 pdf
- 02/06/09 House: Committee substitute printed 090325568-H1 pdf
- 03/04/09 House: Bill text as passed House and Senate (HB2435ER) pdf
- 03/27/09 Governor: Acts of Assembly Chapter text (CHAP0477) pdf
HISTORY
- 01/14/09 House: Prefiled and ordered printed; offered 01/14/09 091510568
- 01/14/09 House: Referred to Committee for Courts of Justice
- 01/20/09 House: Assigned Courts sub: Civil
- 01/21/09 House: Subcommittee recommends reporting
- 02/06/09 House: Reported from Courts of Justice with substitute (22-Y 0-N)
- 02/06/09 House: Committee substitute printed 090325568-H1
- 02/08/09 House: Read first time
- 02/09/09 House: Read second time
- 02/09/09 House: Committee substitute agreed to 090325568-H1
- 02/09/09 House: Engrossed by House - committee substitute HB2435H1
- 02/10/09 House: Read third time and passed House BLOCK VOTE (98-Y 0-N)
- 02/10/09 House: VOTE: BLOCK VOTE PASSAGE (98-Y 0-N)
- 02/10/09 House: Reconsideration of passage agreed to by House
- 02/10/09 House: Passed House BLOCK VOTE (99-Y 0-N)
- 02/10/09 House: VOTE: BLOCK VOTE PASSAGE (99-Y 0-N)
- 02/11/09 Senate: Constitutional reading dispensed
- 02/11/09 Senate: Referred to Committee for Courts of Justice
- 02/13/09 Senate: Assigned Courts sub: Civil
- 02/23/09 Senate: Reported from Courts of Justice (15-Y 0-N)
- 02/24/09 Senate: Constitutional reading dispensed (39-Y 0-N)
- 02/25/09 Senate: Read third time
- 02/25/09 Senate: Passed Senate (40-Y 0-N)
- 03/04/09 House: Enrolled
- 03/04/09 House: Bill text as passed House and Senate (HB2435ER)
- 03/05/09 Senate: Signed by President
- 03/06/09 House: Signed by Speaker
- 03/27/09 Governor: Approved by Governor-Chapter 477 (effective 7/1/09)
- 03/27/09 Governor: Acts of Assembly Chapter text (CHAP0477)